The debt-to-GDP ratio declined to 6.3 percent. The private sector grew by 8.3 percent and this momentum is expected to continue next year, where the nonoil manufacturing sector is expected to produce 15 percent of the total GDP. Keeping the Saudi Economy on this green path, a lot of hard work has to be done, most of which is already reflected in the 2012 budget.

Government spending splits into current expenditures, that pays wages and salaries, and capital expenditures, that grows the economy. Thirty-seven percent of the 2012 expenditures is capital compared to 32 percent in 2011. This a positive sign reflecting the persistence of the government to resolve the unemployment problem and develop its infrastructure. Meanwhile, the SR265 billion allocated to capital expenditures did not include projects that have potential to attract financing from private investors like the expansion of King Abdulaziz Airport in Jeddah. This helps in controlling total expenditures and focusing on job-creating projects.

While budgets tend to underestimate income, they also underestimate expenditures, leading to budgetary overruns.

This is a major concern, especially with the 2011 balance posting a record budgetary overrun of 39 percent.

The SR224 billion extra expenditures were mainly attributed to the disbursement of two salaries, raising the minimum wage, raising the capital of governmental funds, and expansion of the two holy mosques.

This trend of budgetary overruns need to be closely managed. Estimating the total expenditures of 2012 at SR690 billion can be used as a target to break this trend. While the estimate of total expenditures is less than the actual expenditures of this year, this has been a regular practice in Saudi budgets. Using inflation figures of the past two years makes the estimate of 2012 expenditures reasonable and reduces risks of overruns.

Another point, which has been repeatedly talked about, is the diversification of income away from oil.

The outstanding performance of the private sector in 2011, plans to foster lending to small business, and spending on new initiatives are all tools to reduce dependency on oil income. King Abdullah Nuclear and Renewable Energy city (K.A.CARE) was granted SR500 million, which is more than enough to build a medium-size nuclear plant and to spend on research and development of renewable energies.

Ibraheem Al-Mihanna, consultant of the minister of petroleum, emphasized on the need to develop a solar energy industry. "With coordination between King Abdulaziz City For Science and Technology and King Abdullah University of Science and Technology (KAUST) we will be able to reduce costs," he said. This will enable the Saudi economy to stay the main source of energy for the world in the future.