Non-Oil Revenues Grow 53% in Q3
Non-oil revenues grew by 53% in Q3, reaching 121.5 billion riyals.
Saudi Arabia’s Q3 budget shows a 2.3% increase in expenses, on an annual basis, to reach SAR 294.3 billion. Revenues fell by 14%, on an annual basis, reaching SAR 258.5 billion, leading to a 35.7 billion riyal deficit.
Non-Oil Revenue vs Oil Revenue
Non-oil revenues grew by 53% in Q3, reaching 121.5 billion riyals.
Oil revenues dropped by 36% in Q3, totaling 147 billion riyals.
By the end of the first nine months, non-oil revenues hit around 349 billion riyals. This constitutes about 41% of total revenues.
Expenses grew by 12% over first nine months of this year, exceeding 898 billion riyals. By the end of September, revenues fell by 10%, amounting to about 854.306 billion riyals.
Deficit, Public Debt
The deficit during the first nine months reached 43.95 billion riyals. This represents 53% of the year’s projected deficit. The deficit was fully financed through external debt.
By the end of September, public debt stood at 994.26 billion riyals. Of this, 37% is external debt.
Moody’s
Moody’s, a financial services company, issued its report on the preliminary statement of the Saudi 2024 budget projections.
Despite a 6.5% decline in oil production for the current year until the end of September compared to the corresponding period last year, the contribution of non-oil activity to the Kingdom’s GDP will remain strong this year and over the next two years, all while accelerating the pace of mega projects implementation.
The financial services company expects the Kingdom’s oil sector to remain the main source of income for the foreseeable future, noting that economic gains, especially financial ones, from the non-oil economy will take some time to become tangible.
In its March 2023 credit report, Moody’s affirmed Saudi Arabia’s rating at “A1”, with the outlook upgrading from “stable” to “positive.”
In its report, the agency explained that its confirmation of the Kingdom’s rating came as a result of the government’s continued efforts in developing fiscal policy and comprehensive regulatory and economic structural reforms which will support the sustainability of economic diversification in the medium and long term.
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