Al Rajhi Capital expects a budget surplus for Saudi Arabia in 2022

Al Rajhi Capital assumed the same value of expenditures as the ministry

  
A Saudi money exchanger wears gloves as he counts Saudi riyal currency at a currency exchange shop in Riyadh, Saudi Arabia March 10, 2020. Image used for illustrative purpose

A Saudi money exchanger wears gloves as he counts Saudi riyal currency at a currency exchange shop in Riyadh, Saudi Arabia March 10, 2020. Image used for illustrative purpose

REUTERS/Ahmed Yosri
Saudi Arabia is set for a fiscal surplus of around SR25-SR45 billion ($6.7-$12 billion) in 2022, according to a report from investment bank Al Rajhi Capital.

The Saudi-based firm said government revenues could amount to around SR1 trillion in 2022, made up of SR600 billion in oil revenues and about SR380-SR400 billion in non-oil revenues.

This forecast goes against that made by the Saudi Ministry of Finance, which expects a deficit of SR52 billion, as shown in its pre-budget statement for 2022.

The ministry’s forecast for revenues was a lower SR903 billion, inducing their expected deficit.

Al Rajhi Capital assumed the same value of expenditures as the ministry, valued at SR955 billion.

Jadwa Investment, another investment bank in the Kingdom, had almost the same forecasts for oil and non-oil revenues, as well as expenditures, for 2022. Its budget surplus expectation was also similar at SR35 billion.

Al Rajhi Capital also said that VAT rates are likely to remain unchanged.

The Ministry of Finance is set to publish its budget statement for 2022 in December.

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