State 2020 budget did not consider Aramco’s exceptional dividend: Financial Minister

Saudi Arabia reached advanced stages in achieving the goals of Vision 2030, with regard to revenue diversification, Finance Minister, Mohammed Al-Jadaan told Al Arabiya TV.

“The 2020 budget was conservative on revenues and we took no exceptional dividend from Saudi Aramco into consideration,” Al-Jadaan said on the sidelines of the 2020 state budget announcement.

Saudi Arabia reported increased non-oil revenues in 2019, Al-Jadaan indicated, adding that Saudi Aramco will decide on the dividend payment by year-end.

“Saudi Aramco’s initial public offering will not weigh on the Kingdom’s oil revenues. Around 1.7% of proceeds will go for new investors, and the government will receive the remaining portion as the share offering would be invested locally helping to create more revenue channels for the government,” the Minister added.

Al-Jadaan also highlighted the importance of ensuring balance between the Kingdom’s external borrowing and the drawdown of reserves, adding that Saudi Arabia will issue domestic as well as international bonds in 2020.

“By 2020, Saudi Arabia will issue debt instruments and all kinds of sukuk, locally and globally in line with the Kingdom’s financing needs,” Al-Jadaan stated.