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Saudi Arabia: Non-oil Revenues Surge 150% in 5 Years

Saudi Arabia: Non-oil Revenues Surge 150% in 5 Years
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Saudi Arabia: Non-oil Revenues Surge 150% in 5 Years

Saudi Arabia: Non-oil Revenues Surge 150% in 5 Years

Throughout five years, non-oil revenues increased by 150 percent from USD33.9 billion (SAR127 billion) in 2014 to around USD83.5 billion (SAR313 billion), according to 2019 estimates.

This approach reflects the success of Saudi procedures in expanding the economic base and diversifying the income sources of the state’s public treasury.

Saudi Crown Prince Mohammed bin Salman has affirmed that the economic and structural reforms in the national economy are progressing toward achieving the objectives of the Saudi Vision 2030 aimed at diversifying the economy and achieving stability, economic and financial sustainability, as well as stimulating the private sector and improving the living standards of citizens.

Ihsan Buhulaiga, a Saudi economist and former member of Shura Council, stressed the importance of Saudi steps in relying on various income sources rather than one source. He highlighted the significance of the kingdom announcing a budget with high revenues at a time when oil prices are declining.

Buhulaiga added that the Saudi steps are effective in moving towards an economy that doesn’t suffer from the fluctuation of oil prices through activating all the economic channels. He noted that the non-oil revenues contribution rose from 12 percent in 2014 to 32 percent in 2018.

Further, the growth average of non-oil revenues reached 20 percent on an annual basis – the total non-oil revenues represent 10 percent of 2019 GDP estimated at USD833.4 billion (USD3.125 trillion).

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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.