Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Saudi Revenue Seen at $295 Billion a Year by Samba Financial

Don't Miss Out —
Follow us on:

June 19 (Bloomberg) -- Saudi Arabia will collect $295 billion a year in government revenue from 2012 to 2016 as the Arab world’s biggest economy benefits from high oil prices, Samba Financial Group said.

Hydrocarbon earnings are expected to be $265 billion a year in the same period, Riyadh-based Samba said in an e-mailed report today. Real gross domestic product growth will average 5 percent for the period, while inflation will be stable at an average of 5.5 percent, it said.

“Under our oil price and production assumptions we expect that the government will have plenty of money to spend during the forecast period,” the bank said. “Government spending will remain the engine of economic growth.”

Saudi Arabia boosted spending last year as it sought to avert the political unrest that spread through other Arab countries. The government spent 804 billion riyals ($214 billion) and collected 1.11 trillion riyals of revenue, according to the Ministry of Finance.

Economy Minister Muhammad al-Jasser said in May he hoped the kingdom’s real gross domestic product growth will be at about 6 percent this year. The International Monetary Fund forecast in April that economic growth will slow to 6 percent from 6.8 percent last year.

To contact the reporter on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.