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Saudi Arabia's Economy: Resilience and Growth Amidst Fluctuating Oil Prices

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Hadeel Hashem
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Saudi Arabia's Economy: Resilience and Growth Amidst Fluctuating Oil Prices

In a recent interview with 'Al Arabiya Business', Dr. Faisal Al-Fayeq, a leading energy affairs advisor, delved into the intricacies of Saudi Arabia's budget for the fiscal year 2024. The budget, interestingly, is the country's fourth trillion-riyal budget, a resilient feat considering the global fall in oil prices.

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Comparing Past and Present Scenarios

Dr. Al-Fayeq drew a parallel between the current economic situation and the year 2013, a time when a barrel of oil was priced at a whopping $111. He pointed out that despite the high oil prices during that period, both the revenue and expenditures of the budget were considerably lower than what they are today. This comparison underscores the growth and strength of Saudi Arabia's economy, which has been able to maintain an upward trajectory despite the fluctuating oil prices.

Anticipating Future Market Trends

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The energy advisor also provided his future predictions, anticipating a significant surge in oil prices at the onset of 2024, which is likely to have a profound impact on global economic landscapes. This prediction, while speculative, is grounded in comprehensive market analyses and understanding of the oil industry's intricacies.

Resilience Amidst Fluctuation

The approved budget for 2024 estimates total revenues at 1.172 trillion riyals ($312.48 billion), with a projected total expenditure of 1.251 trillion riyals ($333 billion). Despite these colossal figures, the budget forecasts a fiscal deficit of 79 billion riyals ($21.07 billion) for the next year. However, the interview sheds light on the resilience of the Saudi economy, capable of weathering the storm of such deficits, and its consistent growth in the face of fluctuating oil prices.

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