Saudi Arabia unveils SR1.02 trillion budget in privatization push

Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. (REUTERS)
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Updated 10 December 2019
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Saudi Arabia unveils SR1.02 trillion budget in privatization push

  • King Salman pledges to empower private sector and boost transparency across the economy
  • Saudi Finance Minister Mohammed Al-Jadaan said government would continue its focus on developing the private sector

RIYADH: Saudi Arabia is set to spend SR1.02 trillion ($272 billion) next year as the Kingdom embarks on a major privatization push amid a widening budget deficit.
The government’s annual budget released on Monday predicts revenue of SR833 billion in 2020, leaving a projected deficit of SR187 billion — or the equivalent of 6.4 percent of GDP. It anticipates real GDP growth of about 2.3 percent next year.
King Salman announced the figures at a cabinet meeting in Riyadh.
“We are determined to continue implementing economic reforms, diversifying sources of income, including investing the proceeds of Saudi Aramco by the Public Investment Fund, optimizing the use of available resources, empowering the private sector and raising the level of transparency and efficiency of government spending to boost growth and development rates,” he said.

Announcing the budget breakdown, Saudi Finance Minister Mohammed Al-Jadaan said that while spending next year would be less than in 2019, the government would continue its focus on developing the private sector, stressing there would be no increases in taxation.
“Privatization is at the top of the government’s priorities,” he told reporters.
“We will continue to support big projects and will continue to support promising projects,” he said. ” Enabling the private sector is the top priority of Vision 2030. We have more to come and our journey toward Vision 2030 demands it.




Saudi Finance Minister Mohammed Al-Jadaan said the government would continue its focus on developing the private sector. (Ahmed Fathi)

The budget takes place against a backdrop of quickening reforms in 2019 and a number of key events from the record initial public offering of Saudi Aramco to the creation of fast track tourism visas.
“We believe that the revenue assumptions in the budget are realistic, both oil and non-oil,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, told Arab News.
“Despite the planned pullback in government spending, we expected to see a pickup in real non-oil GDP growth as investment activity strengthens. Spending by the PIF will be central for the higher investment activity.

"The finance ministry hosted a visit of international investors to coincide with this year’s budget announcement, underscoring the government’s desire to attract more overseas investment in the slipstream of the world’s biggest IPO. The group included a number of international investment companies, insurers and asset managers, including Goldman Sachs, Mayfair Bank, Etiqa Insurance and Nippon Life Insurance Company among others.
Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank also attended.
While reducing the Kingdom’s dependence on oil revenues is a key part of the Vision 2030 reform agenda, the commodity remains the principal driver of spending trends for both Saudi Arabia and other Arabian Gulf oil-exporting nations.
They have been coordinating production cuts since 2017 through the OPEC+ group of producers that includes Russia, in an effort to keep the market in balance amid surging output from US shale producers.
Last week the Kingdom spearheaded an agreement between the OPEC+ group of exporters to commit to further output cuts to help avert an oversupply of oil on the global market.
Education gets the lion’s share of government spending in 2020 with some SR193 billion set aside for the sector after more than 500 schools were opened in 2019.
The budget analysis also reveals that most non-oil sectors of the economy posted positive growth rates during the first half of this year with the construction sector recording growth for the first time since 2015.
That helped to reduce the unemployment rate among Saudis at the end of the first half of the year by 0.4 percentage points to 12.3 percent compared to the end of 2018.
US-based IHS Markit analyst Bryan Plamondon, told Arab News: “The 2020 budget highlights rationalized spending, with debt issuance and reserves helping to fill the gap from weaker revenues. We expect the Kingdom’s fiscal account will post wider deficits during 2020–21 as spending on Vision 2030 continues.”

*Click here for the full budget statement from the Ministry of Finance


New Saudi envoy to Oman presents credentials to Sultan Haitham

Updated 15 November 2024
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New Saudi envoy to Oman presents credentials to Sultan Haitham

MUSCAT: Saudi Arabia’s new envoy to Oman, Ibrahim bin Saad bin Bishan, presented his credentials to Sultan Haitham bin Tariq at the Al Baraka Palace on Thursday, the Saudi Press Agency reported.

During their meeting, Sultan Haitham commended the historical Saudi-Omani ties and the two nations’ continued progress across various sectors.

The ambassador also conveyed greetings from King Salman and Crown Prince Mohammed bin Salman to the sultan, wishing the Omani people continued prosperity.

Omani Sultan received Saudi Ambassador Ibrahim bin Saad bin Bishan at Al-Baraka Palace in Muscat on Thursday. (SPA)

Saudi Arabia and Oman are both members of the Gulf Cooperation Council, which also includes Bahrain, Kuwait, Qatar and the UAE.

There was also a meeting between the ambassador and Omani Foreign Minister Sayyid Badr bin Hamad Al-Busaidy, reported the Oman News Agency.

Previously, bin Bishan was supervisor of the Yemen operations room and minister plenipotentiary at the Saudi Ministry of Foreign Affairs.


4th Global Ministerial Conference on Antimicrobial Resistance kicks off in Jeddah

Updated 15 November 2024
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4th Global Ministerial Conference on Antimicrobial Resistance kicks off in Jeddah

  • Three-day conference aims to enhance international efforts to confront challenges associated with antimicrobial resistance

RIYADH: The fourth high-level Global Ministerial Conference on Antimicrobial Resistance kicked off in Jeddah on Thursday under the theme “From declaration to implementation – accelerating actions through multi-sectoral partnerships for the containment of AMR.”

The three-day conference, being held under the patronage of the Ministry of Health, includes ministers of health, environment and agriculture from various countries, besides the participation of a number of heads of international organizations such as the World Health Organization, the Food and Agriculture Organization, the World Organization for Animal Health, and non-governmental organizations such as the Bill and Melinda Gates Foundation, in a move to enhance international efforts to confront the escalating challenges associated with antimicrobial resistance, which has become a threat to global health.

Saudi Minister of Health Fahd Al-Jalajel stressed that the conference is an opportunity for the international community to commit to a unified roadmap and set clear guidelines that will help address the increasing drug resistance in humans and animals.

Antimicrobial resistance poses a threat to all age groups, as it affects human, animal and plant health, as well as the environment and food security.

To curb the spread of antimicrobial resistance, the minister explained that we must adopt a comprehensive approach that systematically addresses the challenges that hinder progress, including sharing best practices, innovative financing initiatives, and developing new tools to combat antimicrobial resistance, stressing that the meeting is a vital opportunity to strengthen our collective global response to the risks of this growing “silent epidemic.”

Director General of the World Health Organization Dr Tedros Adhanom Ghebreyesus said that antimicrobial resistance is not a future threat but a present one, making many of the antibiotics and other medicines we rely on less effective, and routine infections more difficult to treat.

He praised Saudi leadership in hosting the conference, stressing that the world must work together across a range of sectors, health, environment and agriculture, to stop the spread of antimicrobial resistance.

He pointed out that the Jeddah meeting will help coordinate global efforts across diverse ecosystems, including human, animal and agricultural health, in addition to protecting the environment.

A number of countries have already resorted to imposing laws that prevent the dispensing of antibiotics in pharmacies without a prescription, and the use of antibiotics in animal farms such as poultry and livestock has been regulated in a bid to slow resistance.
 


Saudi and British defense ministers hold talks on cooperation and Middle East security

During their meeting in Riyadh, Prince Khalid bin Salman and John Healey discussed the “Saudi-British strategic partnership. (SP
Updated 15 November 2024
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Saudi and British defense ministers hold talks on cooperation and Middle East security

  • Prince Khalid bin Salman and John Healey discuss ‘joint efforts to address regional challenges’ and ‘shared vision’ for regional and international security and stability

RIYADH: The defense ministers of Saudi Arabia and the UK held talks on Thursday on cooperation between their nations and efforts to bring stability to the Middle East.

During their meeting in Riyadh, Prince Khalid bin Salman and John Healey discussed the “Saudi-British strategic partnership and explored avenues to enhance defense cooperation,” the Saudi Press Agency reported.

Prince Khalid said: “We also discussed our joint efforts to address regional challenges, as well as our shared vision to promote regional and international security and stability.”

Ahead of the talks, the British Defense Ministry said Healey would “reaffirm the UK’s commitment to a future-facing defense relationship with the Kingdom of Saudi Arabia. The defense secretary will build on the decades-long defense relationship between the (countries) to enhance cooperation on shared security priorities.”

Healey, making his first visit to Riyadh since becoming defense minister following the Labour Party’s election victory in July, was also expected to discuss with Prince Khalid the ongoing efforts to secure ceasefire agreements in Gaza and Lebanon.

Earlier on Thursday, Healey met in Ankara with Yasar Guler, his counterpart in Turkiye, a NATO ally.


Ancient organic farming practices in Taif feed growing industry

Updated 15 November 2024
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Ancient organic farming practices in Taif feed growing industry

  • Closed-loop farming supports environment
  • Rising Saudi demand for organic products

RIYADH: Organic farming in Taif province’s villages and its serene mountain and valley farms represents a continuation of an ancient tradition.

This approach avoids synthetic fertilizers and pesticides, ensuring that farms do not damage their surrounding environment, according to the Saudi Press Agency.

Inherited organic farming wisdom from previous generations boosts the health of consumers and the vitality of soil, water, plants, and wildlife.

The farming methods practiced in Taif involve a closed-loop system in which animal and plant waste is recycled into natural fertilizers.

Abdullah Saed Al-Talhi, an 80-year-old Saudi farmer, has been farming in terraced fields in Taif's in the Al-Shafa mountains since he was young. (SPA)

This approach supports crop cultivation and animal husbandry, aligning with Saudi Arabia’s Vision 2030’s food security and sustainability objectives.

Drawing upon his years of experience tending terraced fields in the Al-Shafa mountains, 80-year-old farmer Abdullah Saed Al-Talhi told the SPA that organic agriculture is a fast-growing industry.

“Consumer demand for nutritious organic products is reshaping our industry,” he explained.

“Working these mountain terraces has taught me that organic farming is more than a cultivation method — it is our legacy to future generations, ensuring sustainable food production for years to come.”

“Organic farming operates through two distinct approaches,” Al-Talhi said. “We have protected greenhouse cultivation and open-field farming, but both share the same fundamental principle: producing pure food without chemical interventions.”

He emphasized that this natural approach encompasses every aspect of farming — from soil enhancement and seed selection to pest control methods.

“The Ministry of Environment, Water and Agriculture has spearheaded remarkable efforts to advance organic farming in Taif,” he added.

The ministry offers instructional programs to budding organic farmers, supporting the establishment of new farms, increased production from existing farms, and the import and export of organic products.

Other support from the ministry includes securing certification to ensure the credibility of products in Saudi and international markets.

Speaking at a recent organic market event in Taif, Al-Talhi said: “The market for organic products is experiencing remarkable growth.”
 


Light fantastic: Countdown begins to Noor Riyadh 2024

Updated 14 November 2024
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Light fantastic: Countdown begins to Noor Riyadh 2024

  • Event ‘embodies the essence of striving toward new horizons,’ curator says
  • World’s largest light art festival gets underway on Nov. 28

RIYADH: The start of this year’s Noor Riyadh Festival is now just two weeks away and preparations for the annual event are well underway.

Launched in 2021, the festival is a celebration of light and the arts and includes contributions from leading Saudi and international artists. It also features community activities, workshops, discussions and shows.

Billed as the largest light art festival in the world, Noor Riyadh is part of the broader Riyadh Art initiative and aims to support and inspire young artists to drive the Kingdom’s creative economy.

This year’s theme is “Light Years Away” and a host of activities are planned at three key locations — King Abdulaziz Historical Center, Wadi Hanifa and Diriyah’s JAX District — between Nov. 28 and Dec. 14.

The title is inspired by the Thuraya star cluster, which has long been a guiding light and symbol of aspiration, according to Dr. Effat Abdullah Fadag, the curator of Noor Riyadh 2024 and board member of the Visual Arts Commission.

“This year’s theme explores our journey from Althara, or Earth, toward Althuraya, or the stars, celebrating how art can bridge the physical and metaphysical,” she told Arab News.

“‘Light Years Away’ is a theme that embodies the essence of striving toward new horizons, where light is used as a metaphor for hope, creativity and resilience.

“We want the audience to feel connected to the stars above and the Earth below, experiencing how art can unite diverse elements such as science, technology, philosophy and spirituality, fostering a shared sense of inspiration and identity.”

Dr. Effat Abdullah Fadag, an artist and artistic curator, is a member of the Board of Directors of the Visual Arts Commission. (Supplied)

Among the 60 artworks on offer this year are sculptural light installations and laser shows from artists like Ali Alruzaiza and Javier Riera, who use light to reimagine iconic sites like Murabba Palace.

“The works of artists like Saad Al Howede, Kimchi and Chips explore our relationship with the environment, challenging us to reflect on our impact on the Earth,” Fadag said.

“The landscapes of Wadi Hanifa serve as a living canvas, inviting the audience to consider how we can preserve the environment and the beauty of our natural heritage.

“The JAX District is a hub for innovation, experimentation and digital creativity. Originally an industrial area, it has now transformed into a space that bridges art and technology. Here, traditional and modern techniques converge in an environment that supports the creative economy.”

Fadag said she hoped visitors would leave the festival with a renewed sense of curiosity and wonder.

“The Noor exhibition reminds us that, as individuals, we aspire to connect and engage. Art and light have the power to bring us together, inspire us and illuminate new paths forward.

“I believe these experiences will remain alive long after the festival ends, encouraging visitors to carry the festival’s light with them and continue exploring their own journeys, connecting the Earth to the sky in their unique ways.”