2019 Q4 Report En · Page 2

 
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Key Highlights: Budget Deficit in Q4 2019, GDP grows by 0.3% in 2019
Q4 2019 Budget Highlights  
• 
Saudi Arabia recorded a budget deficit of SAR 94.7bn in Q4 
2019, compared to a deficit of SAR 124.9 bn in Q4 2018. 
• 
Total revenue decreased by 12% YoY to SAR 213.5bn in Q4 
2019 from SAR 242.5bn in the same period last year, where 
oil revenue declined 26% YoY to SAR 118.6bn, whereas non-
oil revenue surged 14% YoY to SAR 94.9bn. Revenues from 
‘Taxes on Goods and Services’ witnessed a 27% YoY growth 
to SAR 40.2bn. 
• 
Total expenditure declined 16% YoY to SAR 308.3bn in Q4 
2019. 
• 
Public debt increased to SAR 677.9bn by the end of Q4 2019 
from 655.6bn in Q3 2019. 
 
 
 
SAMA Exceeds Financial Sector Development Target on 
Electronic Payments in a Head of its Foreseen Date 2020 
 
 (SAMA revealed that the rate of electronic payments for the retail 
sector - Individual Retail Payments by the end of July 2019, 
amounted more than 36% of all payments available, including 
cash in the Kingdom, exceeding the target percentage of the 
financial sector development program. The program stipulates 
that the share of non-cash transactions should be increased by 28 
% by 2020. 
 
      This achievement is based on SAMA's strategy for payment 
systems and the Financial Sector Development Program, which 
aims to enhance electronic payment and reduce cash handling to 
reach 70 percent of total payments in the Kingdom by 2030, for its 
many positive effects. These include providing customers with an 
excellent experience in facilitating payment processes, reducing 
cash transaction costs on the local economy, enhancing 
transparency in transactions, and direct impact on the efficiency of 
the national economy. The reduction of cash transactions is one of 
the most important strategic objectives that SAMA has been 
working on during the past period through the completion of 
several initiatives, projects and investments in the digital 
payments sector in line with the objectives of the financial sector 
development program. 
 
        SAMA clarified that within the framework of the importance 
of monitoring and measuring the performance of the payment 
systems strategy, it recently conducted a detailed and 
comprehensive study to review and develop indicators to measure 
the percentage of e-payment transactions of the total payments in 
the Kingdom, and included payment methods currently used in 
the individual sectors in accordance with international practices, 
in addition to Government and business payments sectors. 
2019 GDP Growth (%) * 
• 
Real GDP grew 0.3% in 2019, down from 2.4% expansion 
recorded in 2018. 
• 
The drop in GDP was driven by the oil sector, which shrinked 
3.6%, while the non-oil sector recorded a 3.3% growth in 
2019(it’s fastest rate since 2014).  
• 
The non-oil sector accounted for 57.9% of total GDP in 2019, 
compared to 56.2% 2018 and 56.3% in 2017. 
• 
The Ministry of Finance in its FY 2020 Budget Statement has 
estimated the real GDP annual growth of 2.3% for FY 2020.  
 
 
 
 
*  Based on Preliminary data 
 
PMI Index 
The Saudi Arabia Purchasing Managers’ Index (PMI) slipped to 
56.9 in December 2019 (its lowest reading in five months) from 
58.3 in November 2019, weighed by slower output and new 
orders. A reading above 50 indicates expansion; conversely, a 
reading below 50 indicates contraction.   
 
 
Consumer Price Index (CPI) 
The CPI increased 0.2% YoY in December 2019 after being in 
negative te