Kingdom reports 80% rise in non-oil revenues during Q3

LONDON: Saudi Arabia’s ambitious economic reform plans are proving “effective,” the finance minister said on Sunday, as the Kingdom announced an 80 percent rise in non-oil revenues.

Having been hit hard by the crash in energy prices from mid-2014, Saudi Arabia last year unveiled the ambitious Vision 2030 plan, which aims to wean the economy off its “addiction” to oil.

That plan appears to be paying off, with non-oil revenues hitting SR47.8 billion ($12.7 billion) in the third quarter, and total revenues up 11 percent to SR142.1 billion.

The former statistic highlights “the feasibility of the economic reforms” underway, the Ministry of Finance said in its budget performance update.

“The government continued to prioritize expenditure that directly benefits its citizens, with education being the single largest sector spend in the first nine months of 2017,” the ministry said.

For the first nine months of 2017, revenue hit SR450.1 billion, up 23 percent year-on-year, expenditure was at SR571.6 billion, and the deficit was SR121.5 billion, a decline of 40 percent on 2016.

“Today’s figures show that we continue to move toward our ambitious economic reform objectives for the long term, including the delivery of a balanced budget,” said Mohammed Al-Jadaan, Saudi Arabia’s minister of finance.

“We are also on track to achieve our budget projections for 2017 ... Whilst economic challenges remain, the economic reforms and measures that are set in the Fiscal Balance Program within Saudi Vision 2030 have proved effective, contributing to an increase in non-oil revenues, and we are making progress in creating a stronger and more diversified economy.”