‎Oil at $100 bpd supports Saudi Arabia’s Q1 2022 budget, economy: Analysts

‎Oil at $100 bpd supports Saudi Arabia’s Q1 2022 budget, economy: Analysts

The rise in oil prices to $100 per barrel (bbl) backed Saudi Arabia’s actual budget in the first quarter of 2022, and will further support the Kingdom maintain its economic growth and face inflation, economic analysts told Argaam.

Economic writer Saud Al-Mutair expects the Saudi economy to maintain growth at a pace above 7%, especially with average oil prices steady at $100 level, through 2022 and 2023. The other driver is the private sector’s unprecedented accelerated growth, which is the main pillar of the Vision 2030 success.

Elsewhere, economic analyst Ahmed Al-Shehri said the Saudi budget beat consensus estimates in terms of revenue, gaining 36% over Q1 2021, buoyed by oil prices above the $100-mark. Growth in oil and non-oil revenue by 58% and 7% year-on-year, respectively, was another driver.

He expects crude prices to hold above $100 bpd until the end of this year. They played a key role in the Saudi budget, Al-Shehri elaborated. This will also allow more options for financial policy makers in the Kingdom, in terms of the dynamics used to face potential inflation waves, in case global market conditions remain unchanged.

The estimated and actual expenditure for the first quarter of the year reached SAR 238.75 billion and