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Saudi Arabia set to announce budget for 2022, deficit likely to be narrowed down

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Saudi Arabia is expected to announce its budget for 2022 and the actual budget figures for the current year 2021 on Sunday, with experts predicting the Kingdom’s budget deficit likely to be narrowed down to 52 billion riyals ($13.8 billion) in 2022 as compared to 85 billion riyals in 2021.

Positive expectations prevail regarding Saudi Arabia’s expected and actual budget figures given the improvement in oil prices and the expected tail end of roadblocks related to the outbreak of the coronavirus globally which has been positively reflected on the recent uptick in demand for oil and the movement of trade and markets.

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Financial experts who spoke to Al Arabiya predicted that Saudi Arabia is heading to record its lowest fiscal deficit in eight years in the 2021 budget, as the budget deficit is expected to decrease this year to 85 billion riyals.

Experts said the expected announcement of the lowest fiscal deficit in eight years is mainly thanks to the rise in oil prices from the levels of 2020, which witnessed prices at the level of $16/barrel in April 2020.

In November, Ratings agency Moody's changed Saudi Arabia's outlook to “stable” from “negative”, saying it was likely the government would reverse most of its 2020 debt increase while preserving fiscal buffers.

In an interview with Al Arabiya, Head of Research at Al-Rajhi Capital Mazen Al-Sudairi said he expected the deficit to decline to 85 billion riyals in 2021, compared to an expected deficit of about 141 billion riyals, given that spending did not exceed 1.15 trillion riyals during the year.

Al-Sudairi said he expected oil income to rise to 545 billion riyals in 2021, and to reach 600 billion riyals in 2022, and non-oil income to reach 380 billion riyals, and the budget will achieve a surplus of 25 billion riyals in 2022, compared to an estimated deficit.

He explained that these expectations come despite the reservations in expectations regarding oil production with an average of 9.6 million barrels per day in 2022, while there are optimistic expectations at 10.7 million barrels per day, and despite the fluctuation in asset prices and fears so far from the COVID-19 Omicron variant, adding that he expects that the price of a barrel will be oil could reach $72 in 2022.

The largest Arab economy recorded a budget surplus of 6.7 billion riyals ($1.79 billion) in the third quarter this year, as higher oil prices fueled its first quarterly surplus since 2019.

Read more:

Moody's raises Saudi Arabia's outlook to ‘stable’ from ‘negative’, affirms A1 rating

Saudi Arabia posts budget surplus of over $1.7 billion in Q3: Finance ministry

Saudi Arabia’s industrial sector sees 281 pct jump in investment: Property consultant

Saudi Arabia working on green debt issuance: Finance Minister

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US combat jet crashes in South China Sea exercise, 7 hurt

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A US Navy F35C Lightning II combat jet conducting exercises in the South China Sea crashed while trying to land on the deck of an American aircraft carrier, injuring seven sailors, the military said Tuesday.

The pilot was able to eject before the aircraft slammed into the flight deck of the USS Carl Vinson on Monday and then fell into the water. The pilot was safely recovered by a helicopter, said Lt. Mark Langford, a spokesman for the US 7th Fleet.

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Seven sailors, including the pilot, were injured and three were evacuated for medical treatment in Manila, Philippines, while four were treated on board the ship. The three sent to Manila were reported in stable condition on Tuesday morning, the Navy said.

Details on the crash of the multimillion-dollar aircraft were still being verified, Langford said.

“The status and recovery of the aircraft is currently under investigation,” he told The Associated Press.

Two American carrier strike groups with more than 14,000 sailors and marines are conducting exercises in the South China Sea, which the military says is to demonstrate the “US Indo-Pacific Command Joint Force’s ability to deliver a powerful maritime force.”

Impact to the deck of the USS Carl Vinson was “superficial,” Langford said, and both carriers have resumed routine flight operations.

As China has pressed territorial claims in the South China Sea and increased pressure on Taiwan, the US and its allies have stepped up exercises in the region, in what they call freedom of navigation operations in line with international law.

As the Carl Vinson and Abraham Lincoln strike groups began their dual carrier operations on Sunday, China flew 39 warplanes toward Taiwan in its largest such sortie of the new year, according to Taiwan’s defense ministry.

The formation of 24 Chinese J-16 and 10 J-10 fighter jets stayed out of Taiwanese air space, but the maneuver prompted Taiwan to scramble its own aircraft in response.

Chinese pilots have been flying toward Taiwan on a near-daily basis, and it was unclear if Sunday’s flights were a response to the American exercises. China’s Ministry of Foreign Affairs refused to comment.

Taiwan and China split during a civil war in 1949, but China claims the island as its own territory. Beijing has used diplomatic and military means to isolate and intimidate the self-ruled island, but the US has continued to support Taiwan by selling it advanced weapons and fighter planes.

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Snowstorms, cold and fire threaten displaced Syrians in northern camps

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Five-year-old Intissar and her younger sister Lin were sheltering from northern Syria’s bitter winter cold when fuel from a heater ignited their tent, killing them and seriously injuring their mother.

The young family and other displaced Syrians were living near the Turkish border in a camp of more than 400 tents, which offer little protection from snowstorms and plunging temperatures which struck in recent days.

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The cold snap has brought chaos to traffic and flights in neighboring countries but its effects are most severe in northwest Syria, where 3 million people have been left homeless in a long-running humanitarian crisis.

Many have been displaced several times by the 11-year war.

“People in the camp are suffering. The tents don’t protect from the cold,” said Nouredin al-Abdullah, whose cousin Ahmed is the father of the girls who died. “If you think about heating, God forbid, you and your children may go (the same way).”

He said the latest snowfall was the heaviest he had seen.

The weight of the snow has collapsed many tents, while water seeped underneath them.

Across the region, food supplies and health services have been disrupted and relief workers are struggling to reach some of the 300 worst affected sites, said Mark Cutts, U.N. deputy regional humanitarian coordinator for Syria.

“The numbers are just staggering, and it is very difficult to provide people with all the support they need,” he said. Desperate to stay warm, people were burning cardboard and plastic bottles, and then inhaling toxic fumes.

“Even more suffering is caused because of the lack of fuel for heating,” he told Reuters, adding that at least one child had died from the freezing cold.

“There are more than 1 million people still living in tents or substandard accommodation,” Cutts said. “It’s becoming increasingly urgent that we get people out of these tents.”

Read more: Syrian prison battle death toll tops 150, concern over fate of minors

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Gunmen kill Pakistani policeman guarding polio workers

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Gunmen shot and killed a Pakistani policeman who was providing security for polio vaccination workers in the northwest on Tuesday, according to police.

The assailants fled the scene, and no one claimed responsibility for the attack in Kohat, local police official Dikdar Khan said. He added that the body of the slain policeman had been transported to a hospital.

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No polio workers were harmed in the attack, police said, a day after Pakistan launched a nationwide anti-polio campaign.

Militants in Pakistan often target polio teams and police assigned to protect them, falsely claiming the vaccination campaigns are a Western conspiracy to sterilize children. Militants have claimed responsibility for previous attacks across the country.

Read more:

Pakistan beefs up security in capital after deadly Lahore blast

Bomb blast in Pakistan’s Lahore kills three, injures 20

Pakistani police officer, two militants killed in Islamabad clash

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