Saudi assets gain slightly in July

Saudi Arabia’s foreign assets rebounded slightly at the end of July after a small decline in June and all the increase was in the Gulf Kingdom’s investment in foreign securities.

The assets, controlled by the Saudi Arabian Monetary Agency (Sama), the Central Bank, peaked at nearly SR2.609.3 billion (Dh2.583 billion) at the end of July compared with nearly SR2.596.9 billion (Dh2.570 billion) at the end of June.

The assets had fallen in the previous month, their second monthly decline through 2013, but they remained more than triple their level in early 2000s.

Sama’s monthly bulletin showed deposits with banks abroad dropped to around SR453.9 billion (Dh450 billion) at the end of July from SR466.2 billion (Dh461 billion) at the end of June.

Ivestment in foreign securities soared to nearly SR1.896.8 billion (Dh1.878 billion) from SR1.877 billion (Dh1.858 billion) in the same period.

The increase pushed their ratio to 72.6 per cent of Sama’s total assets at the end of July from around 72.3 per cent at the end of June.

The report showed total assets gained nearly SR121 billion in the first seven months of 2013 and analysts said the increase indicated Saudi Arabia was earning much more than it was spending.

“This means the budgeted surplus for 2013 will be far higher at the end of the year,” a Riyadh-based analyst said.

Saudi Arabia, the largest Arab economy and the world’s top oil supplier, projected 2013 revenue at SR829 billion and expenditure at a record high of SR820 billion, with a budgeted surplus of SR9 billion.

Independent forecasts in the world’s largest oil exporter showed the surplus could rocket by 20-30 times at the end of 2013 despite an expected rise in spending.
 “Based on our forecast of oil prices at $110 a barrel, we project a fiscal surplus of SR277 billion or 9.5 per cent of GDP,” National Commercial Bank (NCB) said.

“This will result in oil revenues of SR1.043.5 billion, representing a decrease of 8.5 per cent compared to actual oil revenues in 2012, which also takes into account a 3.7 per cent decline in export volume.”

Saudi Arabia had forecast a small deficit in 2012 but at the end of the year, it turned into a massive surplus of SR387 billion, the Kingdom’s second highest fiscal surplus after the record 2008 balance of SR581 billion.
 

Follow Emirates 24|7 on Google News.