Saudi budget deficit estimated at $5 billion for 2002

Al Bawaba, the Middle East Gateway ^ | Augustus 13 2002 | Menarapport

[knighthawk]

Saudi Arabia's budget deficit for 2002 could reach five billion dollars, forecasted the Saudi American Bank. The Saudi government’s estimation is significantly higher at $12 billion, based on a $17 price per barrel of oil. The Economist Intelligence Unit predicts that the Kingdom’s deficit will reach $6.6 billion.

Saudi Arabia’s numerous years of budget deficits have led to a national debt approaching SR 638 billion ($170 billion), almost equal to the country’s gross domestic product (GDP). As a result, debt servicing, which exceeds SR 15 billion (four billion dollars) per year, seriously erodes the budget.

[knighthawk]

Ping

[evolved_rage]

Cool! Maybe we've been having an economic war...

But I thought the Arab world invented Mathematics, too bad they never figured out how do accounting. Double entry book-keeping dates back to 16th century Italy. Building palaces on credit, now that's brilliant...

[RonF]

How the hell do you own the Saudi oil fields and lose money? Maybe too much money sent out to the terrorists....

[HassanBenSobar]

Ha-ha!

[Don Carlos]

How the hell do you own the Saudi oil fields and lose money?

Simple. By the time all the "Princes and Royals" get their cut, there just isn't enough left. Things are tight all over, what with the "Bush recession" and all.

[facedown]

Saudi Arabia’s numerous years of budget deficits have led to a national debt approaching SR 638 billion ($170 billion),...

I hope we're not holding any of that paper! It'll never get paid off.

[RonF]

HAH! From what I hear, there's about 5000 royal family members, and they all live like they're back in the days of the divine right of kings. If they don't start spreading the wealth, think about what the French Revolution would have been like if the peasants had had automatic weapons available to them.

[StormEye]

"But I thought the Arab world invented Mathematics, too bad they never figured out how do accounting."

Lots of people have been taught this same pseudo fact.
Read Eric T. Bell's "Men of Mathematics" about the people who produced the mathematical heritage we have today.

[evolved_rage]

I was being facetious. BTW, I think the Arab world claims to have preserved mathematics, but preserving by not using a cave full of books for kindling doesn't really count.

What does Eric T. Bell's "Men of Mathematics" have to say?

[Joe Boucher]

Let these sanctimonious a-holes take their oil and shove it. Let's see what happens after russia delivers its oil and America turns its back on Saudi Arabia. Let the masses eat sand and go to hell.The Saudi regeim won't be able to buy off its population. The graft stops.

[Prodigal Son]

$25bn Saudi gas projects hang in balance

[Prodigal Son]

From- Memri: Iraqi News Wire:

1. Ahmad Al-Chalabi: We Will Allow American Companies to Explore and Produce Oil

"The leader of the Iraqi National Congress said that any Iraqi government that replaces Saddam Hussein will try to increase the country's share of oil production within OPEC to 5 million barrel a day, in order to make up for the losses during the sanction years. He added that he would allow American companies to explore and produce oil in Iraq..."

I would imagine there's going to be lots of Saudi Arabian ulcers in the near future. If Iraq boosts production like that- it's going to break the Saudis. This is why the Saudis don't want to help us attack Iraq- they like Saddam right where he is. Sucks to be them...

[Ranger]

Strange as it seems, I think the Saudi economy is on the verge of collapse, either through a drop in oil prices post Iraq-conflict or as a result of economic deficit, mismanagement and failure of US capital markets to invest in Saudi Arabis given the current and foreseeable political climate.