Saudi Arabia has posted a 50% YoY jump in its budget surplus to SAR 78bn ($20.8bn) in Q2 on higher crude oil prices and production. Oil revenue jumped 89% YoY to SAR 250.4bn ($66.6bn) while non-oil revenue rose 3% YoY to SAR 120bn ($31.9bn) vs. expenditures of SAR 292.5bn ($77.8bn). For H1 2022, revenue rose 43% YoY and spending was 10% higher. As of June, the Saudi government has reserves of SAR 318.6bn ($84.8bn) and a current account surplus of SAR 131.5bn ($35bn). Its domestic debt rose 8.2% from December 2021 to SAR 604.76bn ($160.9bn) and external debt fell 4.6% in H1 to SAR 361.76bn ($96.3bn). The Kingdom has the goal to decouple government spending from oil price volatility. Allocation of its expected surplus for 2022, which is the first in a decade, will be decided by the government’s finance committee early next year. In May, Finance Minister Mohammed al-Jadaan said that the surplus can go to the Public Investment Fund (PIF), the National Development Fund (NDF) and Saudi’s $600bn sovereign wealth fund or could be diverted to forex reserves of central bank.

Saudi Arabia’s 2.5% 2027 was down 0.08 points to 97.15, yielding 3.19%.

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