JEDDAH: Saudi Arabia on Thursday unveiled a bold budget statement that outlines plans to increase spending in 2017 as well as measures designed to drastically cut the deficit.
The fiscal deficit is “now manageable” and is forecast at SR198 billion ($53 billion) next year, moving in the right direction as part of an aim to eliminate it altogether by 2020.
That is a decline of one third from the 2016 budget deficit of SR297 billion, itself 9 percent lower than originally forecast, and far below the high of SR366 billion seen in 2015, in the immediate fallout of the oil price crash.
King Salman approved the general budget for 2017 in a session of the Cabinet.
He underscored that the budget announcement comes amid economically volatile situations suffered by most states.
“Our economy is firm and it has sufficient strength to cope with the current economic and financial challenges and this is the result of the prudent fiscal policies taken by the state,” he said.
“We are determined to strengthen the elements of our national economy, where we adopted Saudi Vision 2030 and its programs according to a comprehensive reform plan that can transfer the Kingdom to broader and more comprehensive horizons to meet the challenges and strengthen its position in the global economy.”
The budget documents showed that the government had been able to finance the deficit by drawing from reserves and surpluses, in addition to borrowing SR200.1 billion on international debt markets.
The Saudi budget for 2017 reiterated the Kingdom’s aim to eliminate the fiscal deficit altogether by 2020. This is in line with the Kingdom’s Vision 2030 and related programs, including the National Transformation Plan.
The government plans to phase out its costly subsidies on energy, although low-income citizens will receive “direct cash support” to help them manage.
It will also introduce “minimal” fees on foreigners gradually up to 2020, the Saudi Finance Minister Mohammed Al-Jadaan told reporters in Riyadh.
“There are two kinds of fees, the first is according to the number of family members an expat has in return for utilities used… this minimal amount will increase gradually every year,” the minister said in response to a question from Arab News.
“The second is already imposed on companies which employ expat workers; this will increase gradually as well until 2020.”
The fees do not apply to domestic helpers, such as drivers and cleaners, but only to expats working in commercial entities, the minister said.
The finance minister ruled out income taxes on Saudi nationals, foreigners or company revenues.
The minister added that the Saudi government had paid all outstanding dues to private sector firms as the beginning of December. Any claims submitted in the last three weeks will be paid in two months’ time.
Al-Jadaan said that the budget figures published on Thursday included the cost of the Yemen war, adding that defending the country was vital no matter what the expenditure.
“There is no price tag (not worth paying) for defending our country, borders and people,” he said.
In 2016, Saudi Arabia’s total revenues are expected to reach SR528 billion, and are forecast to rise to SR692 billion next year. Oil revenues for 2017 are estimated at SR480 billion, 46 percent higher than the 2016 projections, while non-oil revenues are estimated at SR212 billion, a 6.5 percent increase.
Expenditure for 2016 stood at SR825 billion, excluding that related to the previous year, and less than the SR840 billion originally forecast. The expenditure in 2017 is estimated at SR890 billion, an 8 percent increase over 2016.
The total national debt for 2016 was approximately SR316.5 billion, which is 12.3 percent of the projected gross domestic product (GDP) in fixed prices for 2016. Official documents showed that the national debt will not exceed 30 percent of GDP.
“Following successful debt issuances in 2016, debt issuance will continue as and when needed, subject to local and international market conditions,” the budget documents said.
“The Kingdom will seek to raise further debt at attractive rates on international markets.”
This could include diversifying the type of issued debt by issuing Shariah-compliant instruments such as sukuk inside and outside the Kingdom.
Saudi budget slashes deficit forecast by a third
Saudi budget slashes deficit forecast by a third
Salam Equine Hospital takes the reins of equine healthcare
- The state-of-the-art facility combines modern technology with innovative design and specialized medical expertise
MAKKAH: Salam Equine Hospital, a venture by Salam Veterinary Group, recently opened its doors in Buraidah, where it epitomizes Saudi Arabia’s ambition to lead in veterinary and medical innovation.
The state-of-the-art facility combines modern technology with innovative design and specialized medical expertise, setting a new benchmark in equine medicine. The hospital not only offers therapeutic and preventive services but also engages in extensive research and development, positioning itself as a global leader in equine care.
Abdulaziz Al-Jumah, the hospital’s executive director, highlighted the project’s significance in an interview with Arab News. “Salam Equine Hospital is part of the Salam Veterinary Group, and it is the largest veterinary hospital in the world.”
According to Al-Jumah, the hospital has formed strategic partnerships with leading international equine hospitals, such as Baker McVeigh, to bring advanced medical knowledge and technology to Saudi Arabia.
“We have established a plan and a strategy for the hospital, consisting of an engineering system facilitating the entry and exit of horses while ensuring their safety,” he said.
A comprehensive system ensures horse safety from entry to exit, with special gates for emergencies and radiology to prevent infection spread.
The facility has fully equipped recovery and anesthesia rooms where horses are safely anesthetized, operated on, and then monitored in recovery. Its operating rooms are designed to meet international standards for isolation, cleanliness, and air quality, crucial for preventing post-operative infections, Al-Jumah said.
“After the operation, some horses might need intensive care. Therefore, we have established intensive care units that are completely isolated to prevent bacterial infections,” Al-Jumah said. “These units have surveillance cameras to monitor the horses in every room of the hospital and track their safety.”
Al-Jumah said that the hospital has “a radiology room that is lead-lined and fully equipped with radiology and sonar devices that examine the horses’ tendons, fractured bones, and spine. A 360-degree examination is conducted using these exceptional top-notch devices.”
When it comes to equine reproduction, Salam Equine Hospital uses cutting-edge techniques such as artificial insemination, natural insemination, and embryo transfer, including the sophisticated IVF method known as “test tube foal,” where sperm is injected directly into an egg.
The hospital’s reach extends beyond its physical boundaries, with mobile clinics that provide on-site care at stables, ensuring comprehensive health services for horses in the region.
Al-Jumah emphasized the hospital’s ongoing commitment to research. “Salam Equine Hospital is keen to conduct new research and seeks development, uniqueness and excellence in horses’ care, thanks to the support of the board of directors and medical personnel who have raised our ambitions level to become the best in the world. We are always looking to initiate new research in this field.”
This initiative underscores Saudi Arabia’s vision for medical advancement and sets new global standards in veterinary care.
Harvard students explore Jeddah’s history, culture
- This visit is part of a national initiative organized by Saudi students at Harvard University
Jeddah: The Jeddah Historic District Program of the Ministry of Culture recently hosted a delegation of students from Harvard University, the Saudi Press Agency reported.
The students were given a tour of the Jeddah Historic District, known as Al-Balad, highlighting its distinctive architectural, cultural and economic landmarks.
They also participated in activities commemorating World Arabic Language Day, which further enhanced their understanding of the area’s rich heritage.
This visit is part of a national initiative organized by Saudi students at Harvard University to showcase the Kingdom’s cultural and economic development to their peers, the SPA reported.
The Jeddah Historic District Program plays a crucial role in revitalizing the area through community engagement, economic development and sustainable urban planning.
By transforming historic Jeddah into a vibrant environment for living and working, the program aims to establish it as a global heritage and tourist destination.
Saudi project clears 570 Houthi mines in Yemen
Riyadh: Members of Saudi Arabia’s Project Masam removed 570 explosive devices from various regions of Yemen last week.
The total included two anti-personnel mines, 50 anti-tank mines, 508 unexploded ordnances and 10 explosive devices, according to a recent report.
Ousama Al-Gosaibi, the initiative’s managing director, said a total of 473,258 mines had been cleared since its inception in 2018.
The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.
The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.
The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.
Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.
About 5 million people have been forced to flee their homes since the start of the conflict in Yemen, many of them displaced by the presence of land mines.
Riyadh forum explores reading’s role in growth
RIYADH: The Reading Forum, organized by the Libraries Commission, recently concluded at King Abdullah Financial District in Riyadh.
The forum featured dialogue sessions and workshops attracting reading and culture enthusiasts, the Saudi Press Agency reported on Sunday.
Discussions covered novels as artistic expressions that reflect culture and history, foster critical thinking, and the role of narration in promoting cross-cultural dialogue.
Participants highlighted reading and research as tools for personal growth, lifelong learning, and effective content creation.
They emphasized the importance of translation in cultural exchange and global copyright, the SPA reported.
Sessions explored instilling a love for reading in youth through collaboration between families, schools and society, as well as leadership in literary trends and the impact of genres on critical thinking.
The event set out to position reading as a foundation of progress, celebrating Saudi, Arab and global literary talent while fostering a culture of knowledge and intellectual growth.
Riyadh festival explores role of theater in shaping intellectual, artistic futures
RIYADH: The Riyadh Theater Festival is hosting a series of cultural discussions and theatrical performances distinguished by intellectual depth and artistic excellence.
Organized by the Theater and Performing Arts Commission, the festival is being held at Princess Nourah bint Abdulrahman University until Dec. 26.
A seminar on contemporary theater in the Arab world explored the intersection of creativity and sustainability, bringing together an elite group of theater thinkers and creators.
One of the festival’s participants, Kamal Al-Alawi from Tunisia, reviewed the evolution of theater, tracing its journey from the Greek era through the Middle Ages and the Renaissance to the time of Emile Zola, which marked a qualitative shift and revolution in impressionism.
Among the intellectuals and theater experts, Lina Abiad from Lebanon discussed ways to improve theatrical production and modernize it using contemporary methodologies.
The commission’s CEO, Sultan Al-Bazie, described the festival as a cornerstone for advancing theatrical movement in the Kingdom and increasing public awareness of the performing arts.
This year’s event features 20 performances, selected by a committee of experts, reflecting the diversity of theatrical arts in the Kingdom and its intellectual and developmental programs.
The festival underscores the commission’s commitment to supporting the performing arts and Saudi talent, aiming for a strong presence on regional and international stages. It will conclude with a presentation of awards to distinguished performers.
