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


Saudi fund commits $80m for cancer care expansion in Turkmenistan

Updated 7 sec ago
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Saudi fund commits $80m for cancer care expansion in Turkmenistan

  • The agreement reflects the Saudi fund’s commitment to supporting developing countries overcome obstacles to progress

 

RIYADH: CEO of the Saudi Fund for Development Sultan Al-Marshad signed an $80 million development loan agreement with Rahimberdi Jepbarov, chairman of the Turkmenistan State Bank for Foreign Economic Affairs.

The financing supports a project to improve tumor treatment services and establish cancer treatment centers in Turkmenistan, the Saudi Press Agency reported.

Saudi Ambassador to Turkmenistan Said Osman Suwaid attended the event.

The project will enhance healthcare by building and equipping three specialized cancer treatment centers with up to 500 medical beds in different regions.

The centers will feature advanced medical equipment to improve healthcare quality, SPA added.

The agreement reflects the Saudi fund’s commitment to supporting developing countries overcome obstacles to progress.

It underscores the importance of international cooperation in achieving sustainable development and ensuring lasting prosperity, SPA reported.

During his visit to Turkmenistan, Al-Marshad also met with Deputy Chairman of the Cabinet of Ministers and Foreign Minister Rashid Meredov to discuss strengthening development cooperation in various sectors.

Meanwhile, the Saudi fund’s Deputy CEO Faisal Al-Qahtani participated in the inauguration of the Busaiteen Bridge, part of the Bahrain Northern Road Project.

The $250 million project, funded through a grant from the Saudi government, aims to ease traffic congestion and boost investment and economic opportunities in Bahrain.

Bahrain’s Deputy Prime Minister Sheikh Khalid bin Abdullah Al-Khalifa attended the event.

The project is a vital part of Bahrain’s transportation infrastructure, with the Saudi fund collaborating closely with the Ministry of Works for its successful completion.

The Saudi fund’s partnership with Bahrain spans 48 years, during which it has financed 30 projects in sectors like energy, transportation, and social infrastructure. These initiatives have contributed to Bahrain’s sustainable development and economic growth.


Saudi authority expands effort to track food waste

Updated 44 min 36 sec ago
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Saudi authority expands effort to track food waste

RIYADH:  The General Food Security Authority has launched a second field survey to measure food loss and waste rates in Saudi Arabia.

The initiative is part of the National Program to Reduce Food Loss and Waste and aligns with efforts to promote food sustainability and support Vision 2030 objectives, the Saudi Press Agency reported.

The authority’s governor, Ahmed Al-Faris, said that the second survey builds on the 2019 study, which established a baseline for the Food Loss and Waste Index.

The effort follows successful awareness campaigns in collaboration with key stakeholders that engaged public participation, the SPA added.

The new survey aims to analyze food loss and waste at all stages of the food supply chain, including production, importation, transportation, storage, distribution and consumption.

The authority will use the findings to develop solutions to improve food security, reduce environmental and economic impacts, and align the Kingdom’s practices with global sustainability standards.

This initiative is expected to provide more precise, updated data to create targeted strategies for reducing food loss and waste.


New deal will protect Saudi Arabia’s national heritage

Updated 5 min 30 sec ago
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New deal will protect Saudi Arabia’s national heritage

RIYADH: Saudi Arabia’s Public Prosecution and the Heritage Commission have signed a memorandum of understanding to strengthen their collaborative efforts when it comes to protecting and preserving the Kingdom’s identity.

The MoU includes exchanging information on protecting national heritage and combating violations of archaeological sites, reported the Saudi Press Agency on Wednesday.

The deal was signed by Turki Al-Dosari, assistant public prosecutor for investigation, and Jasser Al-Harbash, commission CEO, in the presence of officials and experts in the heritage sector and cultural property protection.

It also involves organizing awareness programs to educate the community about the importance of heritage preservation and the penalties for related offenses.

The partnership marks a strategic step toward establishing a comprehensive framework for protecting heritage sites. It seeks to enhance the Kingdom’s global status as a cultural heritage destination and reinforce its leadership in preserving national identity and history.


Endangered species find new home at Saudi reserve

Several different species were released. (SPA)
Updated 08 January 2025
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Endangered species find new home at Saudi reserve

  • The authority’s programs focus on increasing community awareness, supporting biodiversity protection, and fostering a sustainable environment for wildlife reproduction and conservation

RIYADH: The Imam Turki bin Abdullah Royal Nature Reserve Development Authority, in partnership with the National Center for Wildlife, has reintroduced endangered species by releasing 30 Arabian oryx, 10 Arabian gazelles, 50 sand gazelles, and five red-necked ostriches into their natural habitats.

The initiative aims to promote environmental sustainability, restore ecological balance within the reserve, enhance the role of these species in their ecosystems, and raise awareness about protecting endangered wildlife.

The authority’s programs focus on increasing community awareness, supporting biodiversity protection, and fostering a sustainable environment for wildlife reproduction and conservation, the Saudi Press Agency reported.

Spanning 91,500 sq. km, the Imam Turki reserve is the Kingdom’s second-largest royal reserve. It hosts diverse wildlife and plant species, making it ideal for hiking, wilderness adventures, camping, and sustainable hunting.

Its vegetation cover provides a haven for various bird species, crucial for maintaining ecosystem balance by controlling insects, small rodents, and carrion.


Saudi women embrace natural beauty: a fresh take on changing standards

Updated 07 January 2025
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Saudi women embrace natural beauty: a fresh take on changing standards

  • Trend focuses on simplicity over perfection
  • Consumers take more mindful approach

RIYADH: Women in Saudi Arabia have been embracing a more natural approach to their beauty routines in recent years, focusing on sustainability, health and authenticity over heavy makeup and curated perfection.

Arab News spoke to several women who described how this trend reflects a deep alignment with personal and societal values — prioritizing routines that enhance their natural features while promoting overall well-being and environmental sustainability.

For Laila Al-Ghamdi, this change is personal. “A few years ago, I would say natural beauty was everything to me. As a young teenager, my whole world used to revolve around the epitome of beauty,” she said. “Nowadays, healthier choices are influencing my decisions, and ironically, they’re the ones that make me prettier.”

LOCA focuses on ‘natural ingredients and sustainable packaging.’ (Instagram/locabeautysa)

This shift is supported by local brands that cater to these changing standards. One standout is LOCA Beauty, a Saudi brand with a focus on sustainability that was founded in 2018.

“LOCA Beauty was born out of a desire to provide innovative solutions that align with the Saudi lifestyle,” said Mai Al-Mohaimeed, marketing director of LOCA. “We focus on natural ingredients and sustainable packaging, which resonates deeply with our customers.”

Similarly, Asteri, another brand, empowers women with vegan products that withstand harsh weather conditions while celebrating the region’s natural beauty.

Beauty is no longer about fitting into a mold. It’s about feeling good in your own skin and celebrating who you are.

Munira Al-Ahmad, Local

Sustainability is central to the natural beauty movement in Saudi Arabia. Consumers are increasingly conscious of the environmental and health effects of their purchases. Local brands are rising to meet this demand with eco-friendly materials and safe ingredients.

Glossig, inspired by Saudi Arabia’s desert landscapes, combines cultural storytelling with artistic innovation to enhance individuality. Meanwhile, Mai Ward and Jayla emphasize sustainability and luxury — Mai Ward celebrates Saudi heritage through handcrafted, sustainable products, while Ladeena focuses on organic solutions, delivering skin-friendly products infused with natural oils and butters.

Glossig is inspired by Saudi Arabia’s desert landscapes. (Instagram/glossigcosmetic)

For women like Rawan Al-Zahrani and Munira Al-Ahmad, these brands have become trusted choices.

“I love how LOCA products feel luxurious yet sustainable. Their makeup products are my go-to because they offer such an amazing glow to my skin,” Al-Zahrani said.

Al-Ahmad, meanwhile, praised Asteri for its innovative solutions. “Asteri’s products feel like they’re made for me — lightweight but effective, perfect for our environment,” she said.

Saudi women are increasingly embracing a more natural approach to their beauty routines. (@locabeautysa)

Social media has also played a transformative role in this cultural shift. Platforms such as Instagram have become spaces for clean beauty enthusiasts to share tips and inspire others. Influencers highlight natural products and promote mindful consumerism.

“I follow several Saudi influencers who promote natural beauty and share tips on skincare and makeup,” Al-Zahrani said. “Their advice has helped me simplify my routine and focus on products that work for me.”

While local brands are thriving, they face significant challenges in competing with international giants. In a market saturated with global names it is difficult for smaller brands to stand out.

Asteri Beauty is a Saudi brand that offers vegan products. (Supplied)

“Being a local beauty brand presents both opportunities and challenges,” Al-Mohaimeed said. “This also provides us with an opportunity to emphasize what sets us apart — our deep understanding of the Saudi market and the cultural nuances that shape our consumers’ needs.”

Changing beauty standards also reflect a generational change. Younger Saudis are more open to challenging traditional norms and exploring new ideas, driving innovation in the beauty industry. Natural beauty is becoming more about celebrating individuality and authenticity.

“Beauty is no longer about fitting into a mold,” Al-Ahmad said. “It’s about feeling good in your own skin and celebrating who you are.”

By choosing products and routines that align with their values, Saudi women are redefining the beauty industry, shaping a more sustainable future one natural step at a time.