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).



Oil Prices Set to End Week over 3% Lower as Supply Risks Ease

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
TT

Oil Prices Set to End Week over 3% Lower as Supply Risks Ease

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices fell on Friday, heading for a weekly drop of more than 3%, as concerns over supply risks from the Israel-Hezbollah conflict eased, alleviating earlier disruption fears.
Brent crude futures fell 55 cents, or 0.8%, to $72.73 a barrel by 0758 GMT. US West Texas Intermediate crude futures were at $69.52, down 20 cents, or 0.3%, compared with Wednesday's closing price.
On a weekly basis, Brent futures were down 3.3% and the U.S. WTI benchmark was trading 3.8% lower.
Israel and Lebanese armed group Hezbollah traded accusations on Thursday over alleged violations of their ceasefire that came into effect the day before. The deal had at first appeared to alleviate the potential for supply disruption from a broader conflict that had led to a risk premium for oil.
Oil supplies from the Middle East, though, have been largely unaffected during Israel's parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.
OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a scheduling conflict. OPEC+ is expected to further extend its production cuts at the meeting.
BMI, a unit of Fitch Solutions, downgraded its Brent price forecast on Friday to $76/bbl in 2025 from $78/bbl previously, citing a "bearish fundamental outlook, ongoing weakness in oil market sentiment and the downside pressure on prices we expect to accrue under Trump."
"Although we expect the OPEC+ group will opt to roll-over the existing cuts into the new year, this will not be sufficient to fully erase the production glut we forecast for next year," BMI analysts said in a note.
Also on Thursday, Russia struck Ukrainian energy facilities for the second time this month. ANZ analysts said the attack risked retaliation that could affect Russian oil supply.
Iran told a UN nuclear watchdog it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, a confidential report by the watchdog said on Thursday.
Analysts at Goldman Sachs have said Iranian supply could drop by as much as 1 million barrels per day in the first half of next year if Western powers tighten sanctions enforcement on its crude oil output.