Saudi education, health represents 39% of budget expenditures in H1

The education sector spent 53.1 percent of its approved budget in the first half of 2022 (Shutterstock)
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Updated 06 August 2022
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Saudi education, health represents 39% of budget expenditures in H1

RIYADH: Saudi education and health sectors made up 39 percent of the budget expenditures in the first half of 2022.

The education and health sectors together accounted for SR197.9 billion ($52.6 billion) out of a total of SR512.92 billion, according to newly released figures by the government.

The education sector expenditures amounted to about SR98.3 billion, equivalent to 53.1 percent of its approved budget, while spending in the health and social development sector amounted to about SR99.5 billion, equivalent to 72 percent of the total money allocated for 2022.

In the second quarter of 2022, Saudi Arabia’s oil revenues soared 89 percent year-on-year, helping the Kingdom post a SR77.9 billion ($20.8 billion) budget surplus.

Oil revenues reached SR250.4 billion in the three months to June, compared to SR132.1 billion in the same period in 2021.

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89%

In the second quarter of 2022, Saudi Arabia’s oil revenues soared 89 percent year-on- year, helping the Kingdom post a SR77.9 billion ($20.8 billion) budget surplus.

The takings accounted for 68 percent of all Saudi Arabia’s revenues over 2022’s second quarter.

Oil exports reached $30 billion in March, the highest in at least six years, according to Bloomberg.

The rally in prices and rising production increased the value of crude exports by 123 percent, to almost $1 billion a day, official statistics showed. 

Saudi Arabia’s crude exports soared in July to the highest level since April amid international pressure to tame elevated oil prices, Bloomberg reported.

Observed seaborne shipments from the Kingdom hit 7.5 million barrels a day last month,

according to data compiled by Bloomberg. That compares with a revised 6.6 million barrels a day in June.

The Organization of Petroleum Exporting Countries and its allies, also known as OPEC+ , has been gradually boosting crude production for about a year, with benchmark oil prices trading around $100 a barrel.

This has been contributing to global inflation.

The OPEC alliance is gradually easing away from output curbs imposed early in the pandemic.

The group agreed on Wednesday to a further 100,000 barrels per day oil production hike from September as it warned of a lack of spare capacity for any greater increases.


Amazon to invest $12bn in data centers to expand AI, cloud capacity 

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Amazon to invest $12bn in data centers to expand AI, cloud capacity 

RIYADH: US technology giant Amazon plans to invest $12 billion to build multiple data center campuses in northwest Louisiana, expanding infrastructure to support artificial intelligence and cloud computing. 

The development, spanning Caddo and Bossier Parishes, will support Amazon Web Services’ cloud computing operations and growing demand for AI infrastructure, according to a company statement.  

The announcement comes as the global data center sector is projected to expand at a 14 percent compound annual growth rate through 2030, according to JLL’s Data Center Outlook report, adding nearly 100 gigawatts of new capacity worldwide between 2026 and 2030 and effectively doubling current global capacity. 

David Zapolsky, Amazon’s chief global affairs and legal officer, said the project would build next-generation data center campuses to support artificial intelligence and cloud computing while creating opportunities for local communities. 

“We’re creating hundreds of high-paying jobs and making substantial investments in local infrastructure to serve customers. We’re grateful for our strong partnerships with local leaders and proud to deepen our commitment to Louisiana,” he added.   

The campuses are expected to create 540 direct jobs, including network specialists, operations managers and engineers, along with an estimated 1,710 indirect roles across the regional economy. Construction activity could support up to 1,500 temporary jobs, the company said. 

Amazon is partnering with STACK Infrastructure on the project, and the company said it will self-fund the energy infrastructure required for the project, working with Southwestern Electric Power Co. to cover the full cost of grid upgrades and new power facilities. 

Sustainability features are built into the design, with the company saying the data centers will use verified surplus water for cooling during peak summer periods and outside air cooling for about 87 percent of the year, helping reduce electricity demand by 25 percent to 35 percent during peak grid loads. 

The announcement comes after Pamela MacDougall, Amazon Web Services’ head of energy markets and regulation in Europe, Middle East, and Africa, told Reuters long delays to get power grid connections are challenging the company’s plans to expand data centers in Europe.

Speaking earlier in February, MacDougall said connecting to the transmission network in Europe can take up to seven years - versus the roughly two years it can take to develop a data center, she said.

In the US connection queues average one to three years, according to the International Energy Agency, although they can sometimes also stretch to seven years.

"And we're finding more and more across Europe that certainty of the delivery date has continued to be delayed," she said in an interview.