Riyadh – Mubasher: Jadwa Investment forecast that the Saudi governmental expenses will improve in the second half of 2017.

The lower-than-expected drop of oil prices may lead to a decrease in capital spending expenses, below expectations of SAR 260 billion for 2017, Jadwa Investment added.

The research company forecast that the revenues of oil exports may achieve slight growth year-on-year in Q3-17.

“We also expect to see year-on-year improvements in non-oil revenues following the introduction of an excise tax on harmful products, higher expat levies and dependent fees, and a rise in seasonal investment income,” Jadwa Investment's report added.

The research firm forecast that the governmental debt will reach SAR 450 billion, representing 17% of the Saudi gross domestic product (GDP) by the end of 2017.