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)
Short Url
Updated 10 December 2019
Follow

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


Asir historic landmark among UN best tourism villages

Updated 11 sec ago
Follow

Asir historic landmark among UN best tourism villages

RIYADH: A landmark location in Saudi Arabia’s Asir region has been selected by UN Tourism as one if its best tourism villages 2024.

Abo Noghta and historic Tabab was chosen for its rich heritage, including ancient castles and forts.

The location was named alongside 54 other rural villages worldwide under the theme of “Rural Communities Shaping the Future of Sustainable Travel.”

In a statement, UN Tourism said that the Abo Noghta community has displayed a commitment to eco-friendly renovation techniques by recycling old materials, setting a remarkable standard for sustainable restoration across Asir.

This innovative approach has created new opportunities for the community to flourish, it added.

Zurab Pololikashvili, UN Tourism secretary-general, said that tourism can help rural communities to protect and value their rich cultural heritage while driving sustainable development.

“By leveraging their unique assets, these communities can foster economic growth, promote local traditions, and enhance the quality of life for their residents. We celebrate the villages that have embraced tourism as a pathway to empowerment and community well-being,” he said.

With a legacy of thousands of years in agriculture, Abo Noghta cultivates a diverse range of crops, from wheat and corn to fruit and vegetables. The community also excels in cattle rearing, making it a center for traditional and sustainable farming practices.

To preserve seeds for future planting, Abo Noghta employs a centuries-old technique that involves creating rock structures of varying depths known as “Al-mdafin.” These natural, cool storage spaces protect the seeds, ensuring they remain fresh and ready for the next season.

The best tourism village initiative resulted in 260 applications from more than 60 UN Tourism member states.

The initiative is part of UN Tourism’s rural development program aimed at encouraging development in rural areas, as well as combating depopulation and encouraging sustainable practices.

Previously, the villages were evaluated under nine key areas: cultural and natural resources; promotion and conservation of cultural resources; economic sustainability; social sustainability; environmental sustainability; tourism development and value chain integration; governance and prioritization of tourism; infrastructure and connectivity; and health, safety, and security.


King Salman Global Academy for Arabic Language honors winners of “Harf” competition

Updated 15 November 2024
Follow

King Salman Global Academy for Arabic Language honors winners of “Harf” competition

RIYADH: Contestants from Italy, Malaysia, Nigeria and India have won the four categories of the second “Harf Arabic Language Competition,” dedicated to non-native Arabic speakers.

The second Harf competition began on Nov. 3.

The final results of the “Harf” competition, organized by King Salman Global Academy for Arabic Language, or KSGAAL, were announced at a special ceremony in Riyadh.

The event was attended by experts and enthusiasts in the field of Arabic language, along with representatives from various linguistic institutions.

Abdullah bin Saleh Al-Washmi, KSGAAL secretary-general, said that the “Harf” competition had showcased the beauty and richness of the Arabic language, and had created a competitive environment among learners, motivating them to excel in  language skills. The competition had helped in developing solutions to support non-Arab speakers in overcoming the challenges they faced, he said.

Nearly 1,000 contestants participated in the competition, representing more than 20 educational institutions from universities and colleges across Saudi Arabia. More than 600 participants qualified to compete, with 70 advancing to the final stage.

The closing ceremony was distinguished by performance and poetry presentations, as well as success stories shared by the winners.

The KSGAAL allocated prizes for the top three winners in each category of the competition, with a total prize pool of SR100,000 ($26,624). Additionally, the remaining finalists were honored with cash prizes totaling SR22,000 ($5,857).

Simon Focazola from Italy, a student at Qassim University, was ranked first in the vocabulary proficiency category. Shah Jahan Ansari, an Indian student at Taif University, was ranked second, while Abu Ubaidah Othman, a Filipino student at Northern Borders University, came in third place.

First prize in the language and technology category was awarded to Nooraludada Binti Asmi Anwar, a Malaysian student at King Abdulaziz University. Khadijah Abdul-Muttalib Jalo, a student from Mali at Princess Nourah University, won second place, while Ahmad Mo Zakir Kheral, an Indonesian student at Qassim University, came in third place.

The top three winners of the language and cultural communication category were, respectively, Abdulkadir Mohammed Mirashikh, a Nigerian student at the Islamic University of Madinah, Mwatinah Adam Yusuf Amobolaji, a student at Qassim University, and Suniya Yayiour, a Thai student at Princess Nourah University.

First place, in the “research paper” category, was awarded to Junaid Yusuf Abdulraqib, an Indian student at King Saud University. Second and third places went to Asma Abdul-Muttalib Yahya Jalo, a student at Princess Nourah University, and El-Sisi Bangali, an Ivorian student at Imam Mohammad ibn Saud Islamic University.


New Saudi envoy to Oman presents credentials to Sultan Haitham

Updated 15 November 2024
Follow

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
Follow

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
Follow

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.