The head of research at Al-Rajhi Capital expected the Saudi budget deficit to decline to 85 billion riyals in 2021, compared to an expected deficit of about 141 billion riyals, given that spending did not increase over 1.15 trillion riyals.
As Mazen Al-Sudairy predicted in an interview with Al-Arabiya, the Kingdom's oil income would rise to 545 billion riyals in 2021, and to reach 600 billion riyals in 2022, and that the income would reach 545 billion riyals in 2021. The non-oil budget is 380 billion riyals, and the budget will achieve a surplus of 25 billion riyals in 2022, compared to an estimated deficit.
Al-Sudairy explained that these expectations come despite the reservations in our expectations regarding oil production with an average of 9.6 million barrels per day in 2022, while there are optimistic expectations of 10.7 million barrels per day, and despite Volatility in asset prices and fears so far of the coronavirus Omicron strain, we expect the price of a barrel of oil to be at $72 in 2022.
These expectations come in light of the anticipation of economic circles, today, Sunday, for Saudi Arabia's announcement of the estimated budget for 2022, and the actual budget figures for the current year 2021.
Positive expectations prevail regarding the Saudi budget figures with the improvement in oil prices, and the end of the closures related to the outbreak of the Corona virus globally, which reflected positively on the demand for oil, and the movement of trade and markets.
Saudi Arabia is heading to record the lowest fiscal deficit in eight years in the 2021 budget, as the budget deficit is expected to drop this year to 85 billion riyals.
It is expected that the budget deficit in 2021 will be the lowest during the period from 2014 to 2021, thanks to the rise in oil prices from the levels of 2020, which witnessed prices at the level of $ 16 a barrel. In April 2020.
