PHOTO
JEDDAH – Saudi Arabian Monetary Agency’s foreign assets rose by 13.4 percent on a monthly basis in April to reach $506 billion, which is considered the largest monthly increase since 2013.
Jadwa Investments in its report on Saudi economy for the month of June attributed the monthly increase to rise in deposits in foreign banks by $9.6 billion.
Economists have agreed that the monetary policy adopted by SAMA, the Kingdom’s central bank, supported foreign reserves, adding that it contributed to reducing cash withdrawals from reserves to meet deficit.
The rise in foreign assets is diversified. Domestic and foreign bonds contributed to strengthening reserves after having fallen to less than $480 billion last month.
Jadwa expected oil exports to cross SR675 billion this year compared to SR595 billion in the previous year. The Kingdom’s total revenue from exports would reach SR871 billion while imports would fall to SR450 billion.
The investment company expected the Kingdom’s public debts to rise to SR560 billion by the end of 2018. At the same time, experts believe it is still the lowest among the G-20 member countries.
Saudi Arabia was able to bring down public debts as a result of a series of financial reforms to increase non-oil revenues. Non-oil exports rose by 1.8 percent annually driven by an increase in petrochemical exports, which rose by 16 percent.
According to the report, expenditure on social support schemes jumped to SR26 billion, which was deposited in citizens’ accounts.
Government employees were given monthly allowance for a year to cope with the rising cost of living, which coincided with the start of labor and value added taxes since the beginning of 2018.
In a sign of improved liquidity, transactions at sales points rose 1.8 percent and withdrawals from ATMs increased by 5.5 percent, Jadwa said.
The number of pilgrims from outside the Kingdom rose to 6.5 million in 2017 while the profits of joint stock companies rose to SR25.5 billion during the first quarter of this year.
The deficit during the first quarter of this year amounted to SR34 billion, which represents only 18 percent of the expected deficit of SR195 billion at the end of the year 2018.
© Copyright 2018 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
