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Saudi Arabia’s 2021 Spending Budget Set at $264 Billion

Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. REUTERS/Faisal Al Nasser/File Photo
Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. REUTERS/Faisal Al Nasser/File Photo
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Saudi Arabia’s 2021 Spending Budget Set at $264 Billion

Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. REUTERS/Faisal Al Nasser/File Photo
Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. REUTERS/Faisal Al Nasser/File Photo

The Saudi Ministry of Finance announced on Wednesday the estimated budget for the 2021 fiscal year, with expected general revenues of 846 billion riyals (USA 225.6 billion), and expenditures of 990 billion riyals (USD 264 billion), with a total estimated budget deficit of 145 billion riyals.

In a preliminary report, the ministry said that the 2021 budget would allow the implementation of economic and financial reforms falling within the Kingdom’s Vision 2030.

According to the statement, the global economy is expected to witness a contraction this year, amid cautious optimism on future growth prospects with the easing of precautionary measures and the resumption of normal economic activity.

Despite the negative impact on the growth expectations of the Saudi non-oil economic sectors this year and the increasing budget deficit, the future outlook looks less gloomy, especially after the gradual return to economic activity, the continued decline in the spread of the virus, and the high rates of recovery, the report underlined.

The Ministry of Finance stated that the ongoing positive developments cast a shadow over the next year’s estimates, which indicate the real GDP to grow by 3.2 percent.

The ministry said more opportunities were available for the private sector and funds to participate in infrastructure development projects, noting that in addition to estimating next year’s expenditures at about 990 billion riyals, the government’s expenditures for the year 2023 are expected to amount to 941 billion riyals.

It also emphasized financial stability and sustainability by maintaining fiscal discipline and raising spending efficiency. The preliminary report expects the total public debt in 2020 to reach about 854 billion riyals, which represents 34.4 percent of the Kingdom’s GDP.

According to the report, government reserves will be maintained at the end of the year according to the approved budget at 346 billion riyals, which accounts for 14 percent of GDP.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.