500 billion riyals in financial savings in 4 years
Efforts to raise and rationalize spending efficiency contributed to achieving cost savings that exceeded 500 billion riyals during the past four years. The Ministry of Finance indicated that the indirect lending initiative contributed to financing small and medium enterprises with amounts estimated at 642 million riyals, and the budget focuses on reviewing costs in all sectors. To reduce any financial waste after studies revealed an increase in the cost of projects up to 15% compared to other Gulf countries.
Directing surpluses to development funds
It is expected that budget surpluses will be achieved in 2022, about 90 billion riyals, or 2.5% of GDP, and these surpluses in the budget will be directed to strengthening government reserves and supporting development funds and the Public Investment Fund, and the possibility of accelerating the implementation of some Strategic programs and projects with an economic and social dimension.
It will consider repaying part of the public debt according to market conditions, with the aim of enhancing the ability to deal with crises by strengthening the state’s financial position, and focusing on investment that achieves sustainable economic growth.
283 billion riyals in tax revenues this year
The budget estimated that tax revenues would rise in 2022 AD, about 283 billion riyals, and it is estimated that tax revenues on income, profits and capital gains would reach about 16 billion riyals, as a result of the initiative of the Zakat, Tax and Customs Authority, which is to abolish fines and exemption from financial penalties during the year 2021, which contributed to stimulating Those charged with paying for previous periods, and the government expects in 2022 AD to continue the gradual recovery in economic activity while preserving the initiatives that have been implemented during the past years, and in the medium term, the government aims to continue reducing dependence mainly on oil revenues, and achieving the goals of Vision 2030 from Through diversifying the economy, developing and enhancing non-oil revenues, and ensuring their sustainability in the medium and long term.
Developing the national industry to raise the Kingdom’s competitiveness
The National Industrial Development and Logistics Program was launched at the beginning of 2019, as the state believes in the importance of the four sectors of the program (energy, mining, industry, and logistics) and their integration to achieve added value, maximize and diversify the economic impact and create an attractive investment environment. The program also pays attention to the axes of local content and the industrial revolution. The fourth is that they are one of the most important enablers of the main sectors included in the program and their support factors to bring them to achieve their goals and the desired effect.
The National Industry and Logistics Program has achieved a number of various achievements, including the launch of the geological survey program, five new shipping lines, the inauguration of the first locally manufactured fast interceptor boat, the establishment of renewable energy plants, an accelerated increase in investment in the industrial sector, support for the localization of the military industries sector, and the launch of the « Made in Saudi Arabia.
The program is currently working on developing the infrastructure for its four sectors to be one of the most important factors in raising the Kingdom’s competitiveness and attractiveness as an ideal destination for investment, in addition to optimizing the use of resources, and improving policies and legislation for the sectors to enable the program to achieve its objectives and enable local and foreign private sector investment.
The program will also focus on improving the trade balance, creating a local industry that competes in global markets, creating a sustainable competitive advantage based on innovation, stimulating investments and creating job opportunities, progressing towards achieving the optimal energy mix and increasing the Kingdom’s logistical interdependence locally and globally.
800 billion riyals financial savings from renewable energy
Finance Minister Muhammad Al-Jadaan expected to achieve financial savings of 800 billion riyals during the next ten years, by replacing liquid fuels used locally with renewable energy sources and natural gas, which can be exploited in investment.
He explained that instead of buying fuel from international markets for $60 and then selling it to Saudi utilities for $6, or using part of the Kingdom’s share in OPEC to sell for $6, we will actually replace at least one million barrels of oil equivalent in the next ten years and replace it. Gas and renewable energy, and pointed out that from now until 2025, and perhaps until 2030, financial sustainability will be a priority, indicating that achieving the goals of Vision 2030 requires financial sustainability and control of government spending.
Requiring government agencies to coordinate with the Non-Oil Revenue Center
Supreme directives were issued to compel government agencies, in coordination with the Non-Oil Revenue Center, in the phase of studying, evaluating, signing or renewing contracts that result in the collection of any money in return for providing or facilitating the implementation of government agencies’ services, and providing the center with a copy of all contracts currently in place. After obligating government agencies to provide the Non-Oil Revenue Development Center with the data of its affiliated companies and any related party, this includes revenue collection, financial statements, the nature of contracts and agreements offered by these companies in return for providing services, the statutory bond for revenues, audited and internal financial statements and related details.
Raising non-oil exports to 50%
The Saudi Export Development Authority launched a strategy to enhance Saudi non-oil exports. The new authority’s strategy aims to raise the value of non-oil exports from 16% to at least 50% of non-oil GDP by 2030, according to the Secretary-General of the Saudi Export Development Authority. Faisal Al-Baddah, the institutional transformation of the authority is considered a qualitative road map, whose paths and plans are in line with the developmental visions of the national economy and aims to achieve a real partnership with the private sector, noting that more than 160 obstacles have been resolved during the past year and more than 28 workshops and training programs were held for exporters, The Saudi Export Stimulation Program was launched, along with the “Made in Saudi Arabia” program, which contributed to creating a unified identity for Saudi exports and enhancing their reliability. An exporting company during the past year, while the “Made in Saudi Arabia” program has attracted more than 1,200 local companies since its launch, and introduced its products to a large number of global markets, and Saudi non-oil exports recorded an estimated increase of 34% during the period from the beginning of 2021 to the third quarter, compared to the same period in 2020, and it was among the highest exporting sectors, the petrochemicals sector, the building materials sector, the vehicles sector and spare parts.