Saudi Arabian Finance Minister Mohammed al-Jadaan said in a press conference that Saudi Arabia expects to make $261bn in revenue from oil sales, making up 70% of the kingdom’s total revenue. That’s an 11% increase from 2018, and follows increasing crude oil prices–which are over $80 per barrel as of writing.
Most likely a result of higher oil prices, Saudi Arabia also plans to boost government spending in 2019, estimating $295bn in expenditure, a 7% year-on-year increase. It expects growth to remain under 2.5% in the next three years.
“I hope that the private sector sees in the contents of this statement a clear message of the government’s determination to support economic growth,” he reportedly said at the press conference in Riyadh.
“We wanted to make sure that the economy grows and the private sector is enabled and therefore creates jobs for our youth.”
Researchers at Al Rajhi Capital said that the estimates were conservative considering rising oil prices, spurred by US sanctions on Iran. Head of Research at Al Rajhi Capital Mazen Alsudairi told Bloomberg that the kingdom would need between 3% and 4% growth per year in its non-oil economy.
This follows Saudi Aramco’s IPO being put on hold and a general slowdown for the country’s push towards privatisation.
Fiscal reforms aim to maintain low deficits in the medium term, with fiscal balance expected by 2023.
