RIYADH: Saudi Arabia’s budget deficit fell by 71 percent in the first quarter of this year, the finance minister said on Thursday, after the kingdom made sweeping spending cuts.
The deficit dropped to 26 billion riyals ($6.93 billion) in the first three months following the cuts made as a result of the dramatic drop in oil revenues, Mohammed Al-Jadaan said.
“This is a very encouraging figure and clearly reflects our aim to achieve a balanced budget in 2020,” he said.
Saudi Arabia’s budget deficit was initially projected at $53 billion for this year.
This is the first budget report released by the kingdom, which earlier this month said it would begin issuing quarterly reports to boost transparency.
Riyadh has moved to diversify its traditionally oil-dependent economy following the sharp fall in crude prices in 2014.
Last year, it announced a “Vision 2030” plan aimed at developing its industrial and investment base and boosting small- and medium-sized businesses in a bid to create more jobs for Saudis and reduce reliance on oil revenue.
In September, it froze salaries and reduced benefits for civil servants — who comprise the bulk of the workforce — as part of a package of austerity measures.
King Salman restored those benefits in a royal decree last month.
In October, the kingdom raised $17.5 billion in its first international bond offering.
Saudi Arabia is also preparing to sell just under five percent of energy giant Aramco next year. In April, it cut taxes on oil companies in a bid to attract buyers.
Saudi budget deficit drops 71 pct in Q1: minister
Saudi budget deficit drops 71 pct in Q1: minister
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
