GulfBase Live Support
Leave a message and our representative will contact you soon
28/12/2016 05:47 AST
The Saudi Budget 2017 sees “progressively lower budget deficit achieving breakeven by 2020, a debt ceiling of 30% of GDP, continuing energy price reforms, enhanced disclosures and transparency, likely labor market reforms and other new initiatives,” Al Rajhi Capital said in its “Budget 2017 Overview”, adding that these “have all the markings of being in line with the objectives of the flagship NTP and Vision 2030 plans of the Kingdom.”
The report further said that energy price reforms (for fuel and electricity) started last year are set to continue. “However, the implementation date is as yet unknown and will likely be preceded by a cash transfer mechanism, the registrations for which are slated to start in Feb. 2017. We view these targeted subsidies as positive which will cushion the impact on disposable incomes of low and mid-income Saudi households,” Al Rajhi Capital said.
Moreover, “VAT, levies on sugary drinks, income from white land tax, full impact of measures announced in 2016 will all drive non-oil revenue growth in 2017 and beyond. Also, labor reforms in the nature of levying a fee on non-Saudi workforce have been suggested, but further information regarding the nature and extent of proposals will determine their immediate impact on the profitability of various sectors,” ARC report said.
ARC Research believes that the private participation gets a boost with higher 2017 NTP budget.
In its recently published report “Saudi Arabia Yearbook – Outlook 2017”, ARC Research said 2017 will be a crucial year for NTP implementation – in line with these views, the budget spending for NTP implementation has been increased by more than 4-times in budget 2017 to SR42 billion (SR9 billion in 2016).
Further, SR217 billion will be spent on NTP implementation during the 3-year timeframe of 2018-2020.
For these investments to bear fruit, ARC Research believes the “private sector’s contribution should pick pace in 2017 and the implementation should transition from semi-conceptual stage to actual plans on the ground.”
Saudi Gazette
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
05/04/2018
Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa
Arab News
05/04/2018
In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.
A massiv
Arab News
05/04/2018
Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices
The National
05/04/2018
Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re
Times of Oman
05/04/2018
Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i
The Peninsula