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.



PIF Launches New Company to Deliver Expo 2030 Riyadh

PIF Launches New Company to Deliver Expo 2030 Riyadh
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PIF Launches New Company to Deliver Expo 2030 Riyadh

PIF Launches New Company to Deliver Expo 2030 Riyadh

The Public Investment Fund (PIF) announced the launch of Expo 2030 Riyadh Company (ERC), wholly owned by PIF, to build and operate the facilities of Expo 2030 Riyadh –Saudi Arabia’s first World Expo– as well as preserving the legacy of the event.

In a press release, PIF said the masterplan for Expo 2030 Riyadh covers an area of six million square meters, making it one of the biggest World Expo sites. The Expo will be to the north of the city, near the future King Salman International Airport, and with direct connections to the Saudi capital’s landmarks.

According to SPA, Expo 2030 Riyadh is projected to attract more than 40 million visits. After the expo event, ERC plans to lead the transformation of the Expo’s gated area into a global village to serve as a multicultural hub for retail, food and beverage, surrounded by an international residential community with world-class amenities, and setting new standards in sustainable tourism, according to the release.

PIF continues with its strategic mandate to achieve economic impact for Saudi Arabia while securing sustainable returns. PIF is one of the world’s most impactful investors, driving Saudi Arabia’s economic diversification while also enabling the creation of key sectors and opportunities that help shape the global economy. PIF leads the development of transformative giga-projects and landmark real estate initiatives across Saudi Arabia.

PIF Head of the Local Real Estate Investment Division Saad Alkroud said: “ERC benefits from PIF’s diverse local and global ecosystem and the establishment of the company aligns with PIF’s local real estate strategy, which drives economic transformation and diversification, advancing urban innovation and enhancing quality of life, driven by the ambitious goals of Saudi Vision 2030.”

ERC is swiftly launching operations to fulfill its mandate, and will partner with the local and global private sector to achieve its goals for construction, cultural programming and event management, added the release.

Expo 2030 Riyadh runs from October 1, 2030 to March 31, 2031 and will further strengthen the city’s attractiveness to international businesses. It marks the city’s status as one of the world’s fastest-transforming capitals, one that combines sustainability, connectivity, and quality of life at scale. Riyadh was awarded the hosting rights for Expo 2030 in November 2023, winning the vote in the first round.

During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64 billion to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6 billion to GDP.

Countries participating in Expo 2030 Riyadh will have the option of building permanent pavilions and being part of the event’s legacy. The Expo will provide opportunities for long-term business and investment growth.