KUWAIT CITY: Kuwait’s parliament Thursday passed the budget for the 2017/18 fiscal year, projecting a deficit for the third year in a row due to a slump in oil prices.
The deficit is projected to be $21.6 billion (19.3 billion euros), with revenues estimated at $43.6 billion and expenditure at $65.2 billion.
Oil income, calculated at $45 a barrel, is projected at $38.4 billion, up 36 percent from the estimated last year’s budget.
Finance Minister Anas Al-Saleh told parliament that provisional figures showed an actual shortfall of $21.3 billion in the 2016/17 fiscal year, which runs from April 1 to March 31 in Kuwait.
The OPEC member posted healthy surpluses for 16 fiscal years in a row before posting a deficit in the 2014/15 fiscal year.
Saleh said Kuwait had faced “extremely difficult challenges” in the past three years in particular, as crude prices plummeted due to a production glut.
Kuwait’s government had financed the shortfall through state reserves, which are estimated at about $600 billion, and through bond issues, Saleh said.
The government has issued domestic bonds worth $7.2 billion and international bonds worth $8 billion, according to the minister.
Despite the sharp slide in oil prices since 2014, oil income is still projected to constitute 88 percent of Kuwait’s total revenues.
Lawmakers have criticized the government’s failure to diversify income sources in Kuwait, where the budget still relies heavily on oil.
As part of efforts to reduce the deficit, the emirate in September raised petrol prices and plans to increase electricity and water charges.
Kuwait parliament passes deficit budget
Kuwait parliament passes deficit budget
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
