Israel-Hezbollah ceasefire comes into effect    Five survivors found day after Red Sea tourist boat sinking    Imran Khan supporters pushed back by security forces    Russia launched a record number of almost 200 drones toward Ukraine    King Salman calls for rain-seeking prayer on Thursday    Al Hilal advances to AFC Champions League knockout stage despite 1-1 draw with Al Sadd    Finance minister: All Vision 2030 projects have sustainable funding that won't affect public finances    Crown Prince announces medium-term debt strategy to diversify funding sources "A resilient economy capable of overcoming challenges reflects progress towards achieving Vision 2030 goals"    Riyadh Season draws 8 million visitors in 6 weeks    Alkhorayef highlights role of National Initiative for Global Supply Chains in boosting Saudi economy    Saudi Arabia signs investment deals worth SR35bn with foreign firms to strengthen global supply chains    Saudi Arabia unveils updates on Expo 2030 Riyadh master plan at 175th BIE General Assembly Riyadh Expo Development Company established to oversee strategic planning, operations, and legacy development    Saudi FM attends Quadripartite meeting on Sudan in Italy    Best-selling novelist Barbara Taylor Bradford dies    Cristiano Ronaldo's double powers Al Nassr to 3-1 win over Al Gharafa in AFC Champions League    Al Ahli edges Al Ain 2-1, bolsters perfect start in AFC Champions League Elite    Most decorated Australian Olympian McKeon retires    Adele doesn't know when she'll perform again after tearful Vegas goodbye    'Pregnant' for 15 months: Inside the 'miracle' pregnancy scam    Do cigarettes belong in a museum?    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



KSA won't tap reserves: Assaf
Published in The Saudi Gazette on 25 - 10 - 2011

Saudi Arabia will not need to tap into its reserves this year to finance additional budget spending but it is considering whether to issue Islamic or conventional bonds to help fund specific projects, Finance Minister Ibrahim Al-Assaf has said.
The Kingdom pledged early this year to spend an estimated $130 billion, or nearly 30 percent of its economic output, on housing and other social measures for its citizens. That came on top of a record 2011 government budget of SR580 billion ($154 billion), raising the possibility that Saudi Arabia might have to dip into its fiscal reserves to fund spending.
But Al-Assaf said he saw no need for this, since robust oil prices had helped to fill state coffers. “We have 2-1/2 months until the end of the year and lots of things can happen, but I would expect that we wouldn't need to tap into our reserves,” he said.
“Yes we have higher expenditure than projected, but we have higher revenues than projected,” he said on the sidelines of a meeting of Gulf finance ministers in Abu Dhabi.
The Saudi government has little debt; the IMF has estimated gross public debt will fall as low as 7.1 percent of GDP this year. Jadwa Investment has calculated that the country could run a budget deficit of 10 percent of GDP for the next decade without issuing any debt and still have substantial reserves.
But there has been speculation in financial markets that the government could resume issuing debt, in order to prepare markets for the possibility of heavier issuance if it needs to raise funds in the future.
Al-Assaf said debt issuance to help cover expanded budget spending was not on the cards. But he said issues of Islamic or conventional paper for projects were being considered.
“We are considering specific project sukuk or bonds – a productive project that could issue sukuk. For example, the airports which are a very good investment,” he said.
“We can issue sukuks to be financed from the receipts of the airport or this specific project. If there is a need for government guarantees, then we will look into it.”
Saudi Arabia plans to spend over $400 billion in the five years to 2013 on infrastructure and development projects; it is working on three major railway projects and upgrading some of its airports.Asked whether Saudi Arabia was interested in investment opportunities in debt-stricken Europe, Al-Assaf said: “When it comes to investment of official resources, we are different from other countries because we don't invest long-term. We invest our surplus resources in semi-liquid assets with low risk. We don't invest them in direct investment. When it comes to the resources of our Funds, especially Public Investment Fund, we are continuing to focus on local investments.”
Al-Assaf also said he was surprised by a proposal from some emerging countries in the Group of 20 nations to boost the resources of the International Monetary Fund.
“I was surprised to read and listen to the proposal for increasing the resources of the IMF...I think the current resources, including those that are under process in the quota, would be sufficient to cover needs,” he said. Saudi Arabia is the only Arab member of the G20.
“If we think of the huge demand on IMF resources, one expects it to be from Europe this time, so the main source of those resources will be the Europeans. Yet the IMF of course should be ready to supplement those resources and also be ready to help other member countries,” Al-Assaf said.
Saudi Arabia will provide aid worth $3.75 billion to Egypt, whose economy has suffered from social turmoil in the wake of this year's uprising, he said.
“It was announced: $3.7 billion and it is not all budget support. It is a mix of different items including budget support, bonds, and deposits in the central bank as well as concessionary assistance from the Saudi Fund for Development.”
In June, the Kingdom gave a $400 million cash grant to Jordan, and it pledged to participate in a $20 billion Gulf aid package for Oman and Bahrain in March.
“Saudi Arabia has been active in helping other Arab countries, and other friendly countries...We will continue to help them in their development process,” Al


Clic here to read the story from its source.