Oct. 23 (Bloomberg) -- Saudi Arabia is likely to generate $163 billion of oil revenue this year, the most in more than two decades, on higher oil prices and more crude exports, said Samba Financial Group, the country's second-largest bank.

The price of Saudi crude oil will average $51 a barrel in 2005, 45 percent more than 2004's $35.17 a barrel, the Riyadh-based lender said in a report on the economy received by e-mail yesterday.

``This boom is coming at a time when the region as a whole has identified important gaps in physical infrastructure after years of neglect,'' said Ala'a Al-Yousuf, chief economist at Manama, Bahrain- based Gulf Finance House said. That's encouraging governments and companies to spend more on property development and industrial projects, Al-Yousuf said in a telephone interview today.

Unemployment among Saudi males of about 9 percent is helping underpin a militant campaign to overthrow the ruling al-Saud family. Militants with suspected links to Osama bin Laden's al-Qaeda terrorist network have been targeting Westerners and other foreigners in the kingdom in a bid to scare them out, raising concern about security in the world's largest oil producer.

Crude oil prices in New York have risen almost 43 percent this year to $60.63 a barrel on Oct. 21, according to Bloomberg data. Saudi Arabia's oil revenue last year was $106 billion.

`Saudi Booming'

``The Saudi economy is booming and it is at its best performing period ever,'' Brad Bourland, Samba's chief economist, said in the report. Higher oil production, and government and private spending will spur gross domestic product by 6.8 percent, the most in two decades, the bank said.

Higher oil and other revenue to the government will offset spending by as much as $55.5 billion this year, more than twice last year's budget surplus of $26.1 billion, Samba said.

Gulf Finance is an investment bank helping finance more than $5 billion of property projects in the Persian Gulf region, according to its Web site.

Saudi Arabia, Kuwait, the United Arab Emirates and three other Persian Gulf monarchies will generate a record $305 billion of oil revenue this year, a third more than in 2004, on higher international oil prices, according to Standard Chartered Plc, a U.K. bank.

Foreign assets at the Saudi central bank will triple to $141 billion by year-end, from $47 billion in 2004, Samba said.

To contact the reporter on this story: James Cordahi in Dubai on cherifcord@bloomberg.net

Last Updated: October 23, 2005 08:36 EDT