Saudi Arabia predicts more budget surplus to come despite oil market jitters

Saudi Arabia's budget surplus will be revised upwards in 2023, as authorities said. This indicator deviates from the experts' projections made three months earlier, since the government's confidence over the country's sustainable revenues has increased despite fluctuations in the oil market and fears related to the global economic slowdown.

The kingdom is likely to post a budget surplus of 16 billion riyals ($4.3 billion), doubling its previous estimates of 9 billion riyals. This is reported by the government on Wednesday. Meanwhile, the country's economic growth will reach 3.1%.

When forming the budget, the Saudi authorities often take a conservative view on oil prices. In doing so, they keep all data confidential and base their decisions solely on their forecasts. But Al Rajhi Capital said that the Brent crude oil is expected to be around $78 a barrel next year. This is consistent with the level recorded on Wednesday.