Egypt partners with Google to promote 'unmatched diversity' tourism campaign    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Taiwan GDP surges on tech demand    World Bank: Global commodity prices to fall 17% by '26    Germany among EU's priciest labour markets – official data    UNFPA Egypt, Bayer sign agreement to promote reproductive health    Egypt to boost marine protection with new tech partnership    France's harmonised inflation eases slightly in April    Eygpt's El-Sherbiny directs new cities to brace for adverse weather    CBE governor meets Beijing delegation to discuss economic, financial cooperation    Egypt's investment authority GAFI hosts forum with China to link business, innovation leaders    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's Gypto Pharma, US Dawa Pharmaceuticals sign strategic alliance    Egypt's Foreign Minister calls new Somali counterpart, reaffirms support    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Egypt's Al-Sisi, Angola's Lourenço discuss ties, African security in Cairo talks    Egypt's Al-Mashat urges lower borrowing costs, more debt swaps at UN forum    Two new recycling projects launched in Egypt with EGP 1.7bn investment    Egypt's ambassador to Palestine congratulates Al-Sheikh on new senior state role    Egypt pleads before ICJ over Israel's obligations in occupied Palestine    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Egypt's Ministry of Health launches trachoma elimination campaign in 7 governorates    EHA explores strategic partnership with Türkiye's Modest Group    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Fourth Cairo Photo Week set for May, expanding across 14 Downtown locations    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egypt hosts World Aquatics Open Water Swimming World Cup in Somabay for 3rd consecutive year    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Arabia stimulates the economy by spending $154 billion in 2011
The kingdom plans to spend the reserves accumulated during the oil price boom to upgrade infrastructure
Reuters Published in Ahram Online on 20 - 12 - 2010

Saudi Arabia is to spend SR 580 billion ($154.7 billion) in 2011and expects a deficit of 40 billion riyals, the finance ministry said in a statement on Monday.
The largest Arab economy and top Opec exporter saidthe 2011 budget will again focus on education, health and infrastructure projects.
In 2010, the actual revenues have come to SR735 billion ($196 billion)and actual expenditure reached 626.5 billion riyals ( $167 billion),the ministry said.It expects 2010 real GDP growth of 3.8 per cent and inflation of 3.7 per cent.
Saudi overspent by SR86.5 billion, mainly for salary increases for soldiers, and for some development and education projects.
The kingdom has accumulated huge reserves during a six-year oil price boom and is planning to spend more than $400 billion over the five years to 2013 to upgrade infrastructure, including airports and roads.
Commenting on the budget, John Sfakianakis, chiefeconomist, Banque Saudi Fransi, said, 'It is within the government's commitment to expand the budget. If the oil prices sustain the levels that they have been sustaining over the past months, then they could very likely end up with a good amount of surplus.'
'Overall I think that the budget is very healthy and very stimulatory,' he added.
Paul Gamble, head of research, Jadwa Investment, described it as another stimulatory budget for the economy. 'Capital spending is down very slightly from the level budgeted for 2010, but the absolute level is very high,' he pointed out.
'The breakdown of spending continuesthe theme of enhancing physical and social infrastructure and is in line withrecent development plan. The size ofsurplus in 2010 is bigger than we had anticipated, with revenues surprising on the upside,' Gamble added.
Khan Zahid, chief economist at Riyad Capital, said, 'We believe that fiscal policy will be the key driver of growth inSaudi economy in 2011, backed by the biggest budget ever and massive infrastructure spending of the recently announced 9th Development Plan.'
His comments came shortly before the budget was issued.
'As a result of strong government support we expect the Saudi economy to pick up pace in 2010 and 2011,' he added.
Monica Malik, chief economist, EFG-Hermes, Dubai, said, 'The budget was broadly in line with our expectations. It again points to the continuation in the strongly expansionary fiscal stance.'
'We believe that both private consumption and investment will get a strong boost from the budget and we see real non-oil GDP strengthening further in 2011. The budget again seems to underestimate the oil price and we forecast that Saudi Arabia will realize another surplus in 2011,' Malik added.

Clic here to read the story from its source.