The six countries of the Gulf Cooperation Council announced their budgets for the current year with government spending amounting to 447.1 billion dollars, as all of them witnessed a reduction in spending due to the repercussions of the Corona pandemic and the decline in oil prices, which is a major source of income in the Gulf countries.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, based on the country’s budgets data, Saudi Arabia acquired the lion’s share of government spending among the Gulf states by $ 264 billion, accounting for 59 percent of the total for the six countries.
Saudi Arabia had announced the third largest budget in its history, with expenditures amounting to 990 billion riyals, which reflects the continued development expansion and support for economic growth, despite the decline in oil prices and the outbreak of the Corona virus.
The Kuwaiti budget came in second place, with government spending of $ 76.1 billion, which constitutes 17 percent of total Gulf spending during 2021.
Third, the budget of the State of Qatar, with government spending of $ 53.5 billion, constitutes 12 percent of the total Gulf spending this year.
In fourth place, the budget of the Sultanate of Oman, with government spending of 28.2 billion dollars, constitutes 6.3 percent of total Gulf spending during 2021.
Fifthly, the federal budget of the UAE came with government spending of $ 15.8 billion, which constitutes 3.5 percent of the total Gulf spending this year.
Note that the aforementioned figure concerns the federal budget only, and it is part of the total public spending in the Emirates, as each emirate has another independent budget.
For example, the budget of the Emirate of Dubai for the same year is about $ 15.6 billion, which is roughly the federal budget for the UAE, while the budget of the Emirate of Sharjah is $ 9.1 billion, while the budget of Umm Al Quwain is about $ 650 million.
And sixth among the Gulf states, Bahrain’s budget came with government spending of $ 9.5 billion, which constitutes 2.1 percent of the total Gulf spending this year.
Saudi Arabia had announced the third largest budget in its history, with expenditures amounting to 990 billion riyals, equivalent to about 71 thousand times the first state budget of 14 million riyals in 1934.
Estimated expenditures for 2021 decreased by 2.9 percent (30 billion riyals) from the 2020 budget of 1.020 billion riyals, which was the second largest budget ever.
For the seventh year in a row, Saudi Arabia is defying the decline in oil prices, with huge government spending estimates.
Saudi Arabia estimated revenues of 849 billion riyals in 2021, 1.9 percent higher than the estimated revenue in 2020, of 833 billion riyals.
Saudi Arabia estimated a deficit of 141 billion riyals, 24.6 percent (46 billion riyals) less than what was estimated in 2020, of 187 billion riyals.
Economic Reports Unit