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Saudi Revenues Jump 50% in 1st Half of 2022, with $36 Bn Surplus

The actual Saudi budget recorded a 49 percent growth in its performance for the half of 2022. (Asharq Al-Awsat)
The actual Saudi budget recorded a 49 percent growth in its performance for the half of 2022. (Asharq Al-Awsat)
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Saudi Revenues Jump 50% in 1st Half of 2022, with $36 Bn Surplus

The actual Saudi budget recorded a 49 percent growth in its performance for the half of 2022. (Asharq Al-Awsat)
The actual Saudi budget recorded a 49 percent growth in its performance for the half of 2022. (Asharq Al-Awsat)

In a performance that exceeded the targeted budget surplus for 2022, the Saudi Ministry of Finance disclosed on Thursday a record increase in revenues during the first half of this year, driven by a surge in oil prices and the fast growth of the non-oil sector.

Experts told Asharq Al-Awsat that energy prices and the non-oil sector were able to support Saudi Arabia’s general budget, thanks to the Kingdom’s diversification of revenue sources and the financial reforms it has been leading for years.

The recent figures confirm the strength of the Saudi economy, which has seen a remarkable growth, despite the recent successive crises, including the Covid-19 pandemic and the Russian-Ukrainian war, according to the experts.

The budget performance during the second quarter of 2022 witnessed revenues exceeding 370.3 billion riyals (USD98.7 billion) and expenditures amounting to 292.4 billion riyals (USD77.9 billion), with the budget recoding a surplus of more than 77.9 billion riyals (USD20.7 billion).

As for the actual performance of the Saudi budget for the half-year, the revenues recorded a surplus of 135.3 billion riyals (USD36 billion), with the volume of realized revenues reaching 648.3 billion riyals (USD172.8 billion), compared to expenses that exceeded 512.9 billion riyals (USD136.7 billion).

Oil revenues during the first half of 2022 amounted to 434 billion riyals (USD115 billion), registering an increase of 75 percent compared to the same period last year.

Non-oil revenues in the first half of this year amounted to 214.2 billion riyals (USD57.1 billion), compared to 204 billion riyals (USD54.4 billion) in the same period last year, recording an increase of 5 percent.

The mid-term budget, which was announced on Thursday, bore a very positive indicator about the performance of public finances in Saudi Arabia. The surpluses achieved during the first six months of 2022, which amounted to USD36 billion, exceeded all previous government estimates.

In this regard, Dr. Abdullah bin Rabeean, academic and economic advisor to Asharq Al-Awsat, said that the excellent performance of the Saudi general budget during the second quarter and the first half of 2022 was the result of the measures taken to reduce financial squandering.

He added that these figures came at a time when the global economy was undergoing multiple crises that impede growth.

The economic advisor further stressed that non-oil revenues saw a good increase of 5%, which confirms the Kingdom’s success in achieving economic reforms and diversifying the sources of income, in line with Vision 2030.

For his part, Economic Expert Ahmed Al-Shehri told Asharq Al-Awsat that the high budget surplus has emphasized the success of the financial reforms undertaken by the Saudi government, at a time when most countries were suffering from economic stagnation.

The government was able to achieve growth in its revenues, while it increased its actual expenditures by 10 percent during the first half of 2022, in order to implement its mega projects within the plans and programs of its Vision 2030, he added.

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Saudi Arabia Completes 90% of Arabian Shield Survey

Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
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Saudi Arabia Completes 90% of Arabian Shield Survey

Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)

Saudi Arabia is advancing its exploration of mineral resources in the Arabian Shield, a region covering 630,000 square kilometers, about a third of the country.

The Kingdom has completed 90% of the survey and released geological data covering 400,000 square kilometers, or 65% of the total survey area.

Speaking to Asharq Al-Awsat, CEO of the Saudi Geological Survey Abdullah Al-Shamrani affirmed that this aims to attract investment in the mining sector.

The Arabian Shield is crucial for Saudi Arabia, as it contains key metallic minerals such as silver, gold, zinc, and copper.

The Arabian Shield runs along the Red Sea coast and the Gulf of Aqaba, from northern Jordan to the Saudi-Yemeni border. It covers regions such as Tabuk, Madinah, Makkah, Al-Baha, Asir, and Jazan, spanning 630,000 square kilometers, or about one-third of Saudi Arabia's land.

The geological survey in this area plays a key role in developing the sector, providing accurate data to attract both local and international investments.

This supports economic growth and helps diversify income sources in line with Saudi Arabia's Vision 2030.

In a statement to Asharq Al-Awsat at the fourth edition of the world’s leading platform on minerals, the Future Minerals Forum (FMF), Al-Shamrani revealed that a new batch of geological data covering 65% of the geophysical survey in the Arabian Shield was released.

This move opens up new opportunities for mining investors.

The project started in 2021, when the survey began collecting and analyzing data on the mineral wealth in the Arabian Shield.

After nine months of work, the database now covers 400,000 square kilometers, providing detailed information to guide investment decisions in mineral exploration, according to Al-Shamrani.

These data are not just technical but are driving increased demand for mining licenses, highlighting the value of accurate information in attracting investment.

Thanks to digital tools, investors worldwide can easily access this data, supporting investment in promising mining projects. With each new update, Saudi Arabia gets closer to completing the full survey of the Arabian Shield.

Al-Shamrani explained that the data includes interconnected layers of geophysical and geochemical information, such as analysis and drilling results. Each new update provides valuable insights for investors, helping them make data-driven decisions.

He also expected that the remaining data sets would be released soon, completing all work in the Arabian Shield.

Mustafa Maki, head of the National Geological Database Initiative at the Saudi Geological Survey, told Asharq Al-Awsat that the new coverage of the airborne geophysical survey includes magnetic and radiometric data, showing a 5% increase over previous periods.

Forty-three new squares have been added, bringing the total to 164 out of 252.

The data is now being processed and will soon be available to investors and visitors through the Saudi Geological Database.

The Saudi Geological Survey has launched new coverage for the surface geochemical survey of valley sediments, adding maps showing the distribution of individual elements and their statistical data.

This expansion covers an additional 20% of the previous area, bringing the total to 10 out of 50 geological squares.

The survey includes data on 57 out of 75 chemical elements, mapped to show their distribution in the squares. Statistical information on these elements has also been released, according to Maki.

Maki emphasized that geological data is crucial for the mining industry worldwide. Investors rely on this data to decide whether to proceed with investments or detailed exploration.

He added that the data from the Saudi Geological Survey, including geophysical and geochemical surveys, provides a strong knowledge base for investors.

This, along with technical reports and other geological data, helps investors make informed decisions about mining and exploration in the Arabian Shield.

Rana Zamai, Chair of the Women’s Empowerment Committee in Mining at the Ministry of Industry and Mineral Resources, confirmed to Asharq Al-Awsat that all necessary requirements for establishing the Women in Mining Association have been completed.

The association is expected to be launched on the upcoming International Women's Day.

Zamai highlighted that a special networking event was held at the FMF, bringing together women from the public and private sectors in mining from 80 countries.

The event was attended by five female leaders from major women’s mining organizations, representing countries like the UK, South Africa, Australia, and Türkiye.

She also pointed out that a key highlight this year was the participation of 25 geology students from King Abdulaziz University, the first group of its kind in Saudi Arabia. The students are expected to graduate in three to four years.