Saudi Budget 2024: Anticipated Spending of SAR 1.251 Bn, Revenues of SAR 1.172 Bn

Expectations for the Saudi economy are an extension of its positive performance (SPA)
Expectations for the Saudi economy are an extension of its positive performance (SPA)
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Saudi Budget 2024: Anticipated Spending of SAR 1.251 Bn, Revenues of SAR 1.172 Bn

Expectations for the Saudi economy are an extension of its positive performance (SPA)
Expectations for the Saudi economy are an extension of its positive performance (SPA)

Saudi Arabia’s Finance Ministry has announced a preliminary statement of budget for the fiscal year 2024 with expenditures valued at SAR 1,251 billion and revenues projected to be SAR 1,172 billion.

A limited deficit is estimated to be recorded at about 1.9 percent.

Finance Minister Mohammed al-Jadaan reaffirmed the Saudi government’s commitment to ongoing structural reforms on both the financial and economic fronts.

These reforms aim to foster economic growth, diversify the economy, and sustain economic growth rates while maintaining financial sustainability.

According to al-Jadaan, this will be achieved through the continued implementation of programs and projects outlined in the Kingdom’s national transformation plan, “Vision 2030”.

The launch of various initiatives and strategies will also help in the development of promising economic sectors, attracting investments, stimulating industries, and increasing both local content and non-oil exports in Saudi Arabia.
The minister further emphasized the significant and active role played by the Public Investment Fund and development funds in ensuring the ongoing implementation of structural reforms.

These reforms aim to boost the growth of non-oil sector activities at high and sustainable rates over the medium term, said al-Jadaan.

He also projected a growth in real Gross Domestic Product (GDP) by 4.4% for the upcoming fiscal year.

In addition to achieving the Kingdom’s goals of financial sustainability and directing expansionary spending to expedite the implementation of major projects and strategies, the budget also focuses on attracting investment, stimulating economic activity, and developing Saudi Arabia’s public financial performance.

The minister added that “the process of analyzing the financial and economic risks facing the Kingdom’s economy is a vital part of understanding the current situation, as it contributes to adopting effective policies and strategies to deal with these risks.”

He said that despite any crises the world is witnessing and their negative impact on the global economy – as was the case with the coronavirus pandemic and geopolitical tensions that negatively affected global supply chains – Saudi Arabia is in a “solid financial position.”



Kuwait Finance House Considering Expansion in Saudi Arabia

The Saudi flag
The Saudi flag
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Kuwait Finance House Considering Expansion in Saudi Arabia

The Saudi flag
The Saudi flag

Kuwait Finance House (KFH), the Gulf country's largest lender, is looking at opportunities to expand in Saudi Arabia, it said in a bourse filing on Tuesday, following a report that it was considering taking a stake in peer Saudi Investment Bank.

Trading in the company's shares, which were suspended before the market open, resumed after KFH issued a statement in response to the report.

KFH said it was conducting studies on the potential expansion and that these were in line with the bank strategy envisioning potential investments in the region, including in Saudi Arabia.

“Regarding the news published by Bloomberg, KFH confirms that it is still studying the available opportunities in more than one bank, and no memorandum of understanding or any agreement has been signed with any bank in the Kingdom of Saudi Arabia,” the lender said.

Amid news of the potential deal, shares of Saudi Investment Bank (SAIB) jumped as much as 4% in Riyadh trading Tuesday.

On Tadawul, the shares of SAIB, the second smallest listed bank in the Saudi financial market in terms of assets and capital following Bank AlJazira, ranged between 13.26 Riyals and 12.78 Riyals, closing on the latest figure.

Meanwhile, the share of KFH Bank, which is the largest in Kuwait in terms of assets and capital, rose by less than 0.50% at 0.717 Kuwaiti dinars.

The Kuwaiti government and the Public Authority for Minors Affairs own 31.5% of KFH’s shares. Vanguard Group owns 2.45% of the Bank’s shares and BlackRock owns 1.75%.

As for the Saudi Investment Bank, it is owned by the General Organization for Social Insurance - Saudi Arabia (25.6%), Yasser Mohammed Al Jarallah (4.6%), Vanguard Group (2%) and BlackRock (1.2%).