Saudi oil revenue to reach $203 billion
Posted: 28 August 2006
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Saudi Arabia will reap record oil revenues of $203 billion this year, according to a report by the Saudi Arabian Bank (Samba). The figure is 25 per cent more than last year˙s total of $162 billion.
Of the estimated $17 billion per month oil export revenues, about $7 billion per month is accumulating as foreign assets at the central bank, the report said.
Samba reported that prices are now expected to average out at $68 for the year, still well above the $38 per barrel needed to meet the Saudi government budget's revenue projection.
Saudi oil production is likely to average 9.4 million barrels per day (b/d) in 2006, the same as in 2005.
The bank reported that 37 mega-projects are currently underway in Saudi Arabia with a total value of $283 billion.
"Our macroeconomic forecast is for nominal GDP growth of 20 per cent this year, and real GDP growth of 5.8 per cent. The difference is that nominal growth captures the rising price of oil, so we find this to be a better measure of what is actually occurring," it said.
"The non-oil private sector will grow 8.9 per cent in real terms, the highest growth in 25 years, while inflation will be under 2 per cent," the bank forecast said.
"The strong oil export earnings will be the main factor behind a likely current account surplus of $114 billion, the eighth surplus in a row. The trade profile of the Kingdom is healthy," the report noted.
Even with the country's predicted spending growth of 20 per cent above 2005 levels, the government is still set to run a surplus this year of an estimated $67 billion.
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