Economy Saudi budget deficit rises fourfold in Q1 2024 By Andrew Hammond May 6, 2024, 10:56 AM Alamy via Reuters Visitors at the Sky Bridge in Riyadh. Revenue from non-oil activity such as tourism grew 9 percent in the first quarter Gap in first quarter hits $3.3bn Non-oil revenue up 9 percent PMI sentiment positive Saudi Arabia recorded a budget deficit in the first quarter of 2024 of SAR12.4 billion ($3.3 billion), four times higher than a year ago – confirming a revenue squeeze that has raised doubts about the funding of some of the kingdom’s giga-projects. The Q1 deficit in 2023 was SAR2.92 billion, the finance ministry’s quarterly budget review said, and the projected deficit for the whole of 2024 is SAR79 billion. Total Q1 revenue of SAR293.4 billion was 4 percent higher than last year’s SAR280.9 billion, but expenditure was up 8 percent at SAR305.8 billion. There was a 37 percent rise in subsidies, a 24 percent rise in social benefits and a 33 percent rise in non-financial asset costs. NewsletterGet the Best of AGBI delivered straight to your inbox every week Oil revenue rose 2 percent compared with Q1 2023 and non-oil revenue rose 9 percent. Total debt at the end of Q1 stood at SAR1.1 trillion, of which SAR450 billion was external. Saudi Arabia’s economy contracted 0.8 percent in 2023 after the government adopted a policy of oil output cuts in a bid to push up global oil prices. The government has forecast three years of budget deficits, causing delays to some of the giga-projects at the heart of its massive economic transformation plan. Saudi stock trading slumps as interest jumps in US stocks Third of Vision 2030 projects ‘completed’ government says Saudi economy contracts for third quarter in a row Despite the Saudi budget deficit and slowing GDP growth, the kingdom’s non-oil private sector started the second quarter of 2024 on a positive note, according to the latest Purchasing Managers’ Index survey, published on Monday. “This uptrend hints at an anticipated spike in the non-oil GDP, likely exceeding the 4.5 percent mark for this year,” said Naif Al-Ghaith, chief economist at Riyad Bank. “Noteworthy is the surge in new orders and inventory expansion, indicative of a proactive response to mounting demand within the market.”
Manufacturing Alba and Ma’aden ‘terminate’ merger discussions Aluminium Bahrain (Alba) and the Saudi Arabian Mining Company (Ma’aden) have ended talks over a merger of the two Gulf manufacturing giants. Discussions had been ongoing since last year and it had been hoped that a deal could be completed in the first quarter of 2025, according to Alba’s chief executive Ali Al Baqali. Last […] 4 hours ago
Finance Aldar secures $2.5bn credit facility to support growth Aldar Properties, Abu Dhabi’s largest developer, has raised AED9 billion ($2.5 billion), taking its overall liquidity to AED27 billion to back its ongoing growth initiatives. The sustainability-linked multi-tranche revolving credit facility attracted orders from 15 global and regional financial institutions. The facility, which has a five-year tenor and incorporates conventional and Islamic tranches across AED […] 2 hours ago
Energy Turkey to invest $20bn to promote energy efficiency Turkey intends to invest more than $20 billion in energy efficiency projects by 2030 to combat climate change and boost sustainable development, according to a news report. The first national energy efficiency action plan attracted investments of $8.5 billion between 2017 and 2023, state-run Anadolu Agency reported, citing Bilal Düzgün, head of the ministry’s energy […] 1 hour ago
Logistics ADQ unit explores offer to buy Aramex stake in cash A subsidiary of Abu Dhabi Development Holding Company (ADQ), a sovereign wealth fund, intends to submit an offer to buy 100 percent of the shares in Dubai-listed logistics company Aramex not already owned by Abu Dhabi Ports Company. Shareholders accepting the offer of Q Logistics Holding, an indirect subsidiary of ADQ Development Holding, will be […] 1 hour ago
