RIYADH: Saudi Arabia will need an oil price of $75 to see a projected surplus of SR90 billion ($24 billion) next year, according to Mazen Al-Sudairi, head of research at Al-Rajhi Capital. 

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 its first surplus since 2013, Al-Sudairi told Arab News.

“Based on our assessment, the budget break-even is around $65 per barrel of Brent,” he added.

Oil revenues could reach SR655 billion in 2022, Al-Sudairi said, adding that the bank estimates of non-oil revenue are at SR400bn taking the total estimate for 2022 revenues to SR1.055 trillion, slightly higher than the government’s SR1.045 trillion estimate.

Al-Sudairi 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 added.