Saudi Oil Income to Reach $163 Bln, Most in 22 Years
Bloomberg.com: Top Worldwide
Oct. 23 (Bloomberg) -- Saudi Arabia is set to generate its highest oil revenue in more than two decades allowing the kingdom to reduce debt and boost spending on education and job creation plans in a bid to reduce unemployment that poses a threat to the country's stability.
The world's largest oil exporter will derive $163 billion from oil sales this year, the most in 22 years, on higher prices and more exports, according to Samba Financial Group, the country's second- largest bank. The price of Saudi crude oil will average $51 a barrel in 2005, 45 percent more than last year, the Riyadh-based lender said in a report on the economy received by e-mail yesterday.
``This boom is coming at a time when the region as a whole has identified important gaps in physical infrastructure after years of neglect,'' said Ala'a Al-Yousuf, chief economist at Manama, Bahrain-based Gulf Finance House said. That's encouraging governments and companies to spend more on property development and industrial projects, Al-Yousuf said in an telephone interview today.
Unemployment among Saudi males of about 9 percent is helping underpin a militant campaign to overthrow the ruling al-Saud family. Militants with suspected links to Osama bin Laden's al-Qaeda terrorist network have been targeting Westerners and other foreigners in the kingdom in an effort to scare them out, raising concern about security in the world's largest oil producer.
Crude oil prices in New York have risen almost 43 percent this year to $60.63 a barrel on Oct. 21, according to Bloomberg data. Saudi Arabia's oil revenue last year was $106 billion.
`Saudi Booming'
``The Saudi economy is booming and it is at its best performing period ever,'' Brad Bourland, the bank's chief economist, said in the report. Higher oil production, and government and private spending will spur gross domestic product by 6.8 percent, the most in two decades, the bank said.
Gulf Finance is an investment bank helping finance more than $5 billion of property projects in the Persian Gulf region, according to its Web site.
Saudi Arabia, Kuwait, the United Arab Emirates and three other Persian Gulf monarchies will generate a record $305 billion of oil revenue this year, a third more than in 2004, on higher international oil prices, according to Standard Chartered Plc, a U.K. bank.
The Saudi central bank will have foreign assets of about $141 billion by year-end, Samba said.
Oct. 23 (Bloomberg) -- Saudi Arabia is set to generate its highest oil revenue in more than two decades allowing the kingdom to reduce debt and boost spending on education and job creation plans in a bid to reduce unemployment that poses a threat to the country's stability.
The world's largest oil exporter will derive $163 billion from oil sales this year, the most in 22 years, on higher prices and more exports, according to Samba Financial Group, the country's second- largest bank. The price of Saudi crude oil will average $51 a barrel in 2005, 45 percent more than last year, the Riyadh-based lender said in a report on the economy received by e-mail yesterday.
``This boom is coming at a time when the region as a whole has identified important gaps in physical infrastructure after years of neglect,'' said Ala'a Al-Yousuf, chief economist at Manama, Bahrain-based Gulf Finance House said. That's encouraging governments and companies to spend more on property development and industrial projects, Al-Yousuf said in an telephone interview today.
Unemployment among Saudi males of about 9 percent is helping underpin a militant campaign to overthrow the ruling al-Saud family. Militants with suspected links to Osama bin Laden's al-Qaeda terrorist network have been targeting Westerners and other foreigners in the kingdom in an effort to scare them out, raising concern about security in the world's largest oil producer.
Crude oil prices in New York have risen almost 43 percent this year to $60.63 a barrel on Oct. 21, according to Bloomberg data. Saudi Arabia's oil revenue last year was $106 billion.
`Saudi Booming'
``The Saudi economy is booming and it is at its best performing period ever,'' Brad Bourland, the bank's chief economist, said in the report. Higher oil production, and government and private spending will spur gross domestic product by 6.8 percent, the most in two decades, the bank said.
Gulf Finance is an investment bank helping finance more than $5 billion of property projects in the Persian Gulf region, according to its Web site.
Saudi Arabia, Kuwait, the United Arab Emirates and three other Persian Gulf monarchies will generate a record $305 billion of oil revenue this year, a third more than in 2004, on higher international oil prices, according to Standard Chartered Plc, a U.K. bank.
The Saudi central bank will have foreign assets of about $141 billion by year-end, Samba said.
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