Saudi Tourism Revenues Abound with Expansion of Economic Diversification

Saudi Tourism Revenues Abound with Expansion of Economic Diversification

Saudi Arabia’s current account balance achieved a surplus of $17.7 billion in the first quarter of 2023, according to the figures published in the monthly report of the Saudi Central Bank (SAMA) for the month of July.

The current account is one of the components of the balance of payments, which reflects the overall picture of the country’s transactions with the outside world. It includes exports, imports, financial transfers, travel expenses and revenues, as well as investment expenses and revenues. The second component is the financial account, which includes the flow of investments, debt, and other capital transactions.

The surplus in the current account shrank in the first quarter of the year compared to the same period last year, when it amounted to $39.6 billion, due to the decline in oil revenues, as a result of the OPEC Plus decision to cut oil production.

However, the significant rise in net inflows from tourism activities gives an indication of the progress made in the Saudi government’s income diversification efforts.

The figures included in the SAMA report showed a significant increase in revenues from tourism activities, amounting to about $9.8 billion in the first quarter of 2023, compared to about $3 billion in the same period