Al-Rajhi Capital forecasts Saudi Arabia’s budget deficit to drop to 85 billion riyals in 2021

Mazen Al-Sudairi, head of research at Al-Rajhi Capital, said Al-Rajhi Capital’s prospects are optimistic for the future. Saudi budget For the year 2021, we expect the deficit to drop to 85 billion riyals in 2021, compared to a projected deficit of around 141 billion riyals, as spending did not exceed 1.15 trillion riyals.

He added in an interview with “Al-Arabiya”, today, Thursday, that we expect oil income to rise to 545 billion riyals in 2021 and reach 600 billion riyals in 2022 and that non-oil income will reach 380 billion riyals and the budget will reach a surplus of 25 billion riyals in 2022, compared to an estimated deficit.

He explained that these expectations come despite the reservations in our oil production expectations with one media of 9.6 million barrels per day in 2022, while there are optimistic expectations at 10.7 million barrels per day and despite the fluctuation in asset and fears so far from the Omicron strain of the Corona virus, we expect the barrel price to be $ 72 in 2022.

He pointed out that oil prices have improved in the second half of 2021, and the budgetary situation has recently changed, because Aramco’s dividends are fixed, and therefore the impact of the price hike is smaller and amounts to about 73 billion. dollars, because the government is the largest owner of the company and the original dividends amounted to $ 75 billion media next year is expected to be higher than that of questyear, and therefore we expect oil income to increase.

Mazen Al-Sudairi said that despite all the fear and tension, experts around the world are optimistic, including JPMorgan, who believes that the world’s scientific and research capabilities to deal with the new mutator are under control and will not create confusion, and the world tends to be optimistic.

At the Saudi stock exchange level, the head of research at Al-Rajhi Capital predicts that the profits of listed Saudi banks will increase more than other sectors, noting that large-cap companies go up the most while small-cap companies fall more, and so now there are opportunities in shares with a capital, medium and small money, with prices that fluctuate between the maximum in one day and the minimum the next day.

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