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Saudi Arabia Steps up ‘Climate Battle’ Efforts

Part of the audience in the Saudi pavilion at the COP27 conference (Asharq Al-Awsat)
Part of the audience in the Saudi pavilion at the COP27 conference (Asharq Al-Awsat)
    Sharm el-Sheikh - Lamia Nabil
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Saudi Arabia Steps up ‘Climate Battle’ Efforts

Part of the audience in the Saudi pavilion at the COP27 conference (Asharq Al-Awsat)
Part of the audience in the Saudi pavilion at the COP27 conference (Asharq Al-Awsat)

The Saudi pavilion at COP27 was one of the most crowded places during the days of the conference in Sharm el-Sheikh.

Visitors did not only attend seminars and discussion sessions, they also met researchers who have introduced programs directed to combating climate change to light.

While Energy Minister Prince Abdulaziz bin Salman was active in leading the Saudi delegation during the days of his presence, which witnessed the launch of many Saudi-sponsored initiatives to confront climate change, researchers enriched the sessions with a lot of technical information on the nature and details of the initiatives.

During the summit, Prince Abdulaziz referred to many initiatives and concepts.

Those initiatives included the establishment of a regional center for the development of reducing emissions, and the launching of the Circular Carbon Economy Knowledge Hub at the beginning of 2023.

He also stressed the need to consolidate the circular carbon economy.

For his part, the Governor of the Public Investment Fund (PIF) and Chairman of Saudi Aramco, Yasir Al Rumayyan, said that Saudi Arabia’s Middle East Green Initiative (MGI) is a turning point in environmental efforts aiming to transition national ambitions into practical steps that affect the entire world.

Al Rumayyan underlined the great efforts being made by the Kingdom to build a green future, as part of its ambitions for carbon neutrality by 2060.

The Voluntary Carbon Market (VCM) Initiative was the first of its kind in the MENA region, Al Rumayyan said during the Saudi Green Initiative Forum.

The world’s largest-ever carbon credit auction took place last month, when 1.4 million tons of carbon credits were sold to 15 Saudi and regional entities. The PIF was also the first sovereign wealth fund to issue a 100-year tranche green bond, Al Rumayyan added.

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Saudi Budget Shows Continued Government Spending on Mega-Projects

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
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Saudi Budget Shows Continued Government Spending on Mega-Projects

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s third-quarter budget results this year reflect the government’s commitment to boosting spending on mega-projects while working to increase revenue and contain the budget deficit.
Saudi Finance Minister Mohammed al-Jadaan stressed that managing the deficit is a key priority. He outlined strategies to ensure sustainable debt management, including directing debt to high-return sectors and attracting domestic and foreign investments.
The Ministry of Finance reported a budget deficit of SAR 30.23 billion ($8.06 billion) in the third quarter, down 15.6% from the same period last year. This brought the total deficit for the first nine months of the year to SAR 57.96 billion.
Government Spending and Revenues
Government revenues grew 20% in the third quarter to SAR 309.21 billion ($82.4 billion), while spending rose 15% to SAR 339.44 billion.
Non-oil revenues increased 6% year-on-year to SAR 118.3 billion, though they were 16% lower than in the previous quarter. Oil revenues climbed 30% year-on-year to SAR 190.8 billion but dropped 10% from the second quarter.
As of the third quarter, Saudi Arabia’s actual revenues for 2024 reached SAR 956.233 billion ($254.9 billion), a 12% rise from 2023.
Saudi Arabia’s spending topped SAR 1 trillion ($266.6 billion) by the end of the third quarter, a 13% increase from SAR 898.3 billion ($239.5 billion) a year earlier. The budget deficit for this period reached SAR 57.96 billion ($15.4 billion).
Saudi Budget Outlook and Reserve Update
The Kingdom’s Finance Ministry expects 2024 revenues to reach SAR 1.172 trillion ($312.5 billion), slightly below last year’s SAR 1.212 trillion ($323.2 billion). Expenditures are projected at SAR 1.251 trillion ($333.6 billion), with a budget deficit of SAR 79 billion ($21 billion), close to last year’s SAR 80.9 billion ($21.5 billion). By the end of the third quarter, the general reserve balance stood at SAR 390 billion ($104 billion), with the current account at SAR 76.7 billion ($20.4 billion) and public debt at SAR 1.157 trillion ($308.7 billion).
Vision 2030 Projects, Economic Reforms
Shura Council member Fadhel al-Buainain attributed the spending increase to Vision 2030 projects and social welfare programs, noting a 6% rise in non-oil revenues and a 16% boost in oil revenues.
He stressed that these gains contribute to financial stability and diversification efforts.
Enhanced Services and Growth Sectors
Dr. Mohammed Makni, Assistant Professor of Finance & Investment at Imam Muhammad ibn Saud Islamic University, highlighted the government’s focus on improving health, education, and quality of life, which are part of Vision 2030 goals impacting citizen services.
Speaking to Asharq Al-Awsat, Makni explained that Saudi Arabia’s recent expansionary spending aims to complete Vision 2030 projects.
He added that the third-quarter budget reflects positive growth across oil and non-oil activities, which have boosted revenues.
Economist Dr. Mohammed al-Qahtani pointed out that non-oil sectors and efficient spending helped reduce the third-quarter deficit.
He cited strong growth in tourism, culture, and entertainment as key contributors to non-oil revenues. Al-Qahtani expects continued improvement in the fourth quarter, especially if oil prices strengthen.