Saudi Arabia

Hajj and Umrah: Booming seasons for the third largest global economy

KSA counts on Hajj and Umrah economy, since this economy generates increased revenue for its public treasury and increases employment opportunities. The spending rates of pilgrims reached 18 billion riyals and the average cost per pilgrim, from abroad, reached 17,381 riyals; despite the fact that the number of pilgrims declined in 2013 to one million and 980,000 pilgrims, compared to more than 3 million last season, due to the expansion work. The total Saudi reserve assets, including gold, rose 309 billion riyals by the end of the third quarter of 2013, to reach two trillion six hundred thirty nine billion riyals, compared to two trillion six hundred thirty billion at the end of the third quarter of 2012. The total reserve asset of the kingdom is 9 times larger than that of the Euro zone, and it represents 88.1 % of the total reserve assets of the EU member states. According to the IMF forecast, the Kingdom will maintain its position as the world’s third biggest current account surplus until 2018 AD. Saudi Arabia occupies the third place after China and India in terms of the best performance among the Group of Twenty (G20) countries. The state’s total budget surplus, during the period of 2013-2018, will likely exceed 800 billion riyals, although public expenditures continue to grow and approximately reach 1.2 trillion riyals by the end of 2018. Besides, the Fitch Rating Agency affirmed Saudi Arabia rating at (AA-) with a positive outlook. S hares outstanding market has recorded an increase of 2.97 % at the end of January 2014, i.e. a value of 1,801.71 billion riyals ($480.45 billion). The Saudi market index closed in the last week of January at 8,761 points, with a slight decline of 11 points. However, the index closed in the third week at 8,772 points. As for the total value of trades, it saw a decline of 30.5 billion riyals, at a rate of 6.1 billion riyals per day compared to the third week which recorded 30.5 billion riyals, at a rate of 6.3 billion riyals a day. KSA also allocated 210 billion riyals for the education sector and 108 billion for health and social services. These figures pave the way for an economic leap in the current year of 2014. Ministry of Finance estimated the revenue by 855 billion riyals, and the public expenditures by 855 billion riyals. The estimated expenses for 2014 decreased from those spent in 2013 by 70 billion riyals, while the public debt is expected to drop to 75 billion riyals. On the other hand, data showed a budget surplus for 2013 by about 206 billion riyals, where revenues amounted to 1,131 billion riyals and expenditures amounted to 925 billion riyals.