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The Custodian of the Two Holy Mosques King Salman bin Abdulaziz has issued a royal decree outlining Saudi Arabia’s 2017 budget. The 2017 budget is estimated to reach SAR 890 billion ($237.3), an 8 percent increase from 2016, and is projected to reflect a record 33 percent decrease in the Kingdom’s national deficit.
 
“Our economy is firm and it has sufficient strength to cope with the current economic and financial challenges,” said King Salman. “We have sought through this budget and its programs to improve the efficiency of capital and operational expenditures in the state, strengthen the situation of public finances, enhance their sustainability, give priority to developmental and service projects and programs that serve citizens directly, contribute to activating the role of the private sector and increase its contribution to the Gross Domestic Product.”
 
In reaching these goals, the 2017 budget expenditures will focus primarily on the following key sectors:
  • Education: SAR 200 billion ($53.3 billion); This covers public education, higher education and training.

 

  • Military: SAR 191 billion ($51 billion); This will support and expand the Kingdom’s military capabilities.

 

  • Economic Resources and General Programs: SAR 155 billion ($41.3 billion); Among the key projects included is the expansion of the Grand Mosque.
 
  • Health and Social Development: SAR 120 billion ($32 billion); This will enable the construction and subsequent equipping of healthcare centers. 38 new hospitals are already in the process of being built.
 
  • Security and Regional Administration: SAR 97 billion ($25.8 billion); The establishment of naval bases for border guards will be among the new projects this budget will facilitate.
 
  • Municipality Services: SAR 55 billion ($14.6 billion); This includes the Ministry of Municipal and Rural Affairs and municipalities.
 
  • Infrastructure and Transport: SAR 52 billion ($13.8 billion); This will go toward building roads, ports, railway, airports, postal services and developing industrial cities.
 
  • National Transformation Plan: SAR 42 billion ($11 billion); This will cover the costs of the NTP initiatives in 2017.

 

  • Public Administration: SAR 27 billion ($7.2 billion); This includes projects, programs and 46 new initiatives.
Revenue is projected to reach SAR 692 billion ($184.5 billion) in 2017, a 31 percent increase from initial projections. Oil revenues are expected to increase by 46 percent, and non-oil revenues are estimated to grow by 6.5 percent. Moreover, the budget deficit is expected to reach SAR 198 billion in 2017, reflecting 7.7 percent of the GDP. Combined, these efforts will move the Kingdom closer to its Vision 2030 goal of balancing the budget by 2020.
 
Saudi Arabia is a member of the G20 and ranks as the 29th most competitive economy in the world, according to World Economic Forum’s 2016-2017 Global Competitiveness Report.

It was on 19 November 2016 that the command of the Saudi-led Arab alliance in Yemen gave its support to a 48-hour UN-backed ceasefire. The hope was that this respite from the bloodshed would allow for the delivery of sorely needed humanitarian aid across the country. It was also very clear that cessation of hostilities could be extended if the Iran-allied Houthi militia abided by the terms of truce. Importantly, this included allowing the entry of aid to the besieged areas of the war-torn country, particularly Taiz City, Yemen’s third largest city. What was formally the country’s vibrant cultural capital is now almost completely surrounded by the Houthis and their allies. The suffering of the city’s inhabitants is immeasurable.

Ultimately, the aim of the ceasefire was to bring about a permanent and lasting end to the conflict through the reopening of diplomatic channels. Alas, the Pacification Committee of the Yemeni army recorded in excess of 70 breaches of the truce by Houthi forces  its allies in Taiz province, only moments after the ceasefire came into effect. These infringements included shelling with heavy and medium weapons and sniping that wounded two civilians. Militia fired artillery and mortar shells at people’s homes in Al-Salow District and bombed the Al-Tabadud Valley area. Mortar rounds and rockets rained down indiscriminately across the different areas of Taiz City. In total, the ceasefire was broken 563 times in Yemen and 163 times on the Saudi border, a coalition official confirmed.

Beyond the flagrant contravention of the ceasefire terms, Houthi forces have frequently launched missiles into Saudi Arabian territory. On one occasion, the Houthis even went as far as to target the Holy City of Makkah, the holiest site of the Muslim world. When such atrocities are regularly attempted by the Houthis, there can be no foundation of trust on which to base a ceasefire. Saudi Arabia necessarily reserves the right to act with the utmost caution in brokering such ceasefires with the Houthis, bearing in mind that the protection of our own citizens must be our priority.

In a latest development, Houthis and General People’s Congress have unilaterally announced the formation of a new government that had legitimacy or support from the internationally recognised Yemeni government. These actions have been condemned by the UN Special Envoy to Yemen, Ismail Ould Cheikh, who said, the move “represents a new and concerning obstacle to the peace process and does not serve the interests of the people of Yemen in these difficult times.” Equally, the Yemeni Prime Minister Ahmed bin Dagher said that Houthis and their allies are “certainly aware that they are undermining U.N. peace efforts when announcing a new government.”

We join Mr Ould Cheikh in his plea to the Houthis and the General People’s Congress to “re-think their approach & demonstrate their commitment to the peace process with concrete actions,” rather than illegitimate and damaging posturing. To end the conflict there must be a withdrawal from occupied cities, and a handing over arms to make way for a much-needed political process and reconstruction of the country.