Al Rajhi Capital sees Saudi non-oil revenue ‘key growth driver’

Riyadh city

Saudi Arabia’s non-oil revenue is forecast to act as a key growth diver as the government is working to build a higher budget surplus, Al Rajhi Capital said in a note.  

The Kingdome is expected to generate higher revenue, compared to the previous estimates, while the non-oil revenue is projected to rise slightly year-on-year (YoY), buoyed by higher non-oil gross domestic product (GDP). 

The Saudi government will likely commit to the current spending levels, while maintaining healthy general reserves, regardless of the oil price volatility, it added.

The Ministry of Finance announced on May 7 the budget performance report, noting a revenue of SAR 280.94 billion and an expenditure of SAR 283.86 billion in Q1 2023, with a deficit of SAR 2.91 billion, Argaam reported. 

Oil revenue stood at SAR 178.61 billion, while non-oil revenue reached SAR 102.34 billion in the three-month period.