Saudi Non-Oil Revenues Hit Record - The StateBudget.

Thanks to high oil prices, Saudi Arabia's oil income in 2007 has risen to a record high of SR754.4 bn ($201.1 bn). In regional terms the size of its oil income is staggering - more than 118% the UAE's GDP in 2006 and four times bigger than the size of Qatar's GDP. Saudi non-oil exports rose close

The 2008 Saudi budget is based on an average crude oil price of $45/barrel at an average 2008 production of 9.5m b/d. Projected expenditure is certain to be surpassed. In 2007, expenditure was projected at SR380 bn and actual spending reached SR443 bn. Revenues are also based on a conservative estimate. Projected revenues for 2007 were SR400 bn and actual income reached SR621.5 bn.

Government debt fell from 28% of GDP in 2006 to 19% in 2007. As the size of the economy grew, government debt in relation to GDP fell. Although part of the surplus money went to pay off government and another SR100 bn went towards foreign asset accumulation, another SR25 bn was allocated to the Real Estate Fund over a five-year period, as the housing needs of the country are rising steeply.

An important highlight of the budget is continuous spending in education and manpower training. Total expenditure in 2007 amounts to SR105 bn, from SR96.7 bn in 2006. Technical and vocational training continues to receive needed budgetary support and seven new technical institutes for girls and 16 vocational training centres form part of the 2008 budget. Health care is another important component of the budget as population growth places demands on adequate public health services.