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Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia will need an oil price of $75 to see a surplus of SR90 billion next year as projected by the ministry of finance, head of research at Al Rajhi Capital said.
The Saudi budget sends a bullish signal to the market as oil production may hit 10.7 million barrels per day along with higher oil prices, driving the Kingdom to report its first surplus since 2013, Mazen Alsudairi told Arab News.
"Based on our assessment, the budget breakeven is around $65 per barrel of Brent," he added.
Oil revenues could reach SR655 billion in 2022, he said, adding that the bank estimates of non-oil revenue is at SAR400bn taking the total estimate for 2022 revenues to SR1.055 trillion, slightly higher than the government's estimates of SR1.045 trillion.
Alsudairi said that 60 percent of revenues will come from oil with the rest from other sources.
"Our estimate for non-oil revenue of SR400 billion is driven by unchanged 15 percent VAT, higher private sector growth, and PIF/SAMA investment returns," he said.
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