Saudi Arabia to expect 2021 oil revenues at average 450 bln riyals: Al-Rahji Capital

Saudi Arabia should expect to achieve oil revenues for the next year ranging between 400-500 billion riyals, according to Mazen al-Sudairy, head of research at al-Rajhi Capital.

Al-Sudairy said his estimates are based on production figures similar to what occurred in the current year, at an average production of 9.3 million barrels per day and exports of 6.5 million barrels per day, and assuming average prices per barrel remain at 48 dollars.

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“The current year witnessed an increase in the item of other income during the third quarter, of which a large part is investment,” said al-Sudairy during an interview with Al Arabiya, adding the tax and zakat income increased by 15 billion riyals in the third quarter due to the increase in the value-added tax (VAT).

Compared to past years, Saudi Arabia’s Finance Ministry chose not to disclose its projections for the coming years as the government now deals with Saudi Aramco as a Tadawul-listed tax payer, according to Finance Minister Mohammed al-Jadaan.

Saudi Arabia’s finance ministry published its budget for the year 2020-2023 on Tuesday, announcing that the fiscal deficit of the government budget for the year 2020 is projected at 298 billion riyals and is expected to decrease to 141 billion riyals in 2021.

For the year 2021, the government expects to achieve revenues of 849 billion riyals.

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