21.2 C
Tuesday, March 5, 2024

Saudi Arabia plans to access global debt markets

Saudi Arabia intends to access international debt markets to cover an expected budget deficit in 2023-2024, as per the finance ministry. This shift is prompted by lower oil prices and the country’s extended oil production cuts.

The preliminary budget statement reveals an anticipated budget deficit of 2% of GDP in the current year, along with a deficit of 1.9% of GDP in 2024, both estimated at 161 billion riyals ($43 billion).

Saudi Arabia is working on an annual borrowing plan aligned with a medium-term debt strategy to “access global debt markets and strengthen the kingdom’s presence in international markets,” says the finance ministry.

Despite the rise in oil prices to above $90 per barrel after Riyadh’s announcement of extending an oil output cut until the end of 2023, total revenue estimates for 2023 increased to 1.180 trillion riyals from an earlier projection of 1.13 trillion riyals, although they remain below 2022 levels of 1.268 trillion riyals.

Total expenditure is expected to increase to 1.262 trillion riyals in 2023, up from an earlier estimate of 1.114 trillion riyals, before a slight decline to 1.251 trillion riyals in 2024.

Despite strong growth in the non-oil economy, lower oil production and revenue in 2023 have led to a revised GDP growth forecast of 0.03%, down from the previous estimate of 3.1%. Non-oil GDP is expected to grow by 5.9% in 2023.

Next article

Related Articles

Sharjah’s Powerful $750 Million Sustainable Bond Issuance

Sharjah's Triumphant $750 Million Sustainable Bond Launch The Government of Sharjah has achieved a significant milestone with the successful issuance of a $750 million 12-year...

UAE Achieves a Pioneering Economic Milestone, Thriving Prosperity

UAE Economy Achieves Unprecedented Milestone The United Arab Emirates (UAE) has achieved a significant milestone in its economic diversification journey, marking what officials are calling...

Vitaliy Chiryassov: Aspiring to Streamline the Business Consulting Industry in the UAE 14567

Vitaliy Chiryassov: Aspiring to Streamline the Business Consulting Industry in the UAE In this interview, we're talking with Vitaliy Chiryassov, an entrepreneur who operates multiple...

International Jewellery Summit Sparkles in Dubai , Dazzling Unity

International Jewellery Summit in Dubai, The anticipation and excitement are palpable as the stage is set for the upcoming India Gem & Jewellery Show in...

Emirates Development Bank’s Impact on UAE Industrial GDP: A Catalyst for Economic Growth

Emirates Development Bank Empowers UAE's Industrial Growth with Boost to GDP Contribution Since the launch of its strategy in 2021, Emirates Development Bank (EDB) has...

Latest Articles