JEDDAH, 14 November 2006 — Saudi Arabia’s actual revenues rose by 44 percent last year on the back of growing oil prices in the international market to reach a staggering SR564 billion ($150.4 billion), according to Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA).
“The actual government expenditures in 2005 grew by 21.5 percent to reach SR346 billion ($92.27 billion), resulting in a budget surplus of SR218 billion ($58.13 billion),” the Saudi Press Agency quoted the SAMA chief as telling a press conference in Riyadh yesterday.
The press conference was held on the occasion of the publication of SAMA’s annual report for 2005. According to the report, the Kingdom’s gross domestic product (GDP) grew by 6.5 percent in 2005 compared to 5.3 percent in the previous year.
Sayari pointed out that the Kingdom’s cost of living index grew by 2.1 percent in accordance with statistics available on the last eight months. The figure is slightly higher than last year’s 1.7 percent.
Speaking about money supply, he said it had increased by 11.6 percent to reach SR553.7 billion ($147.65 billion) by the end of 2005 while it recorded a growth rate of 12.6 percent during the past nine months this year to reach SR623 billion ($166 billion).
Bank credit given to the private sector also increased by 39 percent to amount SR435 billion ($116 billion), Sayari said, adding that banks had to take loan from abroad to meet growing needs of local economic activities. He estimated the total number of licensed banks in the Kingdom at 22 including 10 foreign banks.
Talking about the growth of imports, he said they grew from SR28 billion by the middle of 2001 to SR113 billion by the middle of 2006. Non-oil exports during the same period rose from SR16 billion to SR35 billion. Total exports increased by 43 percent in 2005 to reach SR677 billion ($180.53 billion). Oil exports increased by 45 percent from SR415 billion in 2004 to SR605.9 billion ($161.57 billion) last year.
The Kingdom’s balance of payment surplus in current accounts rose to SR338 billion in 2005 on the back of growing oil prices and non-oil exports. The figure was almost the double of SR195 billion surplus gained the previous year. As a result, the currency basket rose by 11.6 percent.
He described the Kingdom’s population growth as a major challenge. “The number of young Saudi men and women under 30 accounts for 60 percent of the population. This demands greater efforts to provide them with educational, health and other facilities and services,” he said.
Asked why the SAMA report for 2005 was delayed and whether the delay would have a negative effect on foreign investment, Sayari said his organization published the report at this time every year. He expected an increase in both exports and imports this year.
He said efforts were under way to establish the Development Bank (Nama), adding that the new bank would start operation next year. He said the restrictions on bank loans were made in order to protect the interests of those who take them.
