Blow of higher utility bills softened for low-income Saudis

December 24, 2016

Jeddah, Dec 24: Saudi Arabia spends billions on subsidies — so economists were hardly suprised when Thursday’s budget confirmed plans to raise energy and water prices to be more in line with market rates.

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But what was an innovative move was the accompanying “Household Allowance” scheme, which is designed to soften the blow of the rate increases for some of the Kingdom’s most needy residents.

The Kingdom’s subsidies, or “energy benefits”, reached close to SAR 300 billion in 2015, when energy and water accounted for about 80 percent of the overall subsidies, the government’s “Fiscal Balance Program – Balanced Budget 2020” document shows.

But such subsidies disproportionately benefit richer Saudi residents: Lower income households — estimated to account for about 40 percent of the population — only benefit from around 30 percent of energy subsidies, the document shows.

Subsidy cuts

In line with moves made by other Arabian Gulf states, Saudi Arabia has been reducing subsidies, a move it terms “energy and water price reform”.

The first phase of this, which was introduced in 2016, included a “marginal” correction to energy and water prices, with very limited impact on low-income households. That phase produced savings of between SR27-29 billion, as well as reducing the growth rate in energy consumption, the Fiscal Balance Program states.

But the Kingdom plans a future phase of subsidy cuts, between 2017 and 2020, as part of its aim to eliminate its budget deficit during that time.

Domestic prices of energy and water products will be linked to the export price of the respective product, and this will fluctuate according to the international market. The prices of those products will be revised periodically, while the linkage of gasoline and diesel to reference prices is currently being studied, and will be implemented between 2017 and 2020.

The combined energy and water price reforms are expected to lead to saving of SR 209 billion per year by 2020, the Fiscal Balance Program states.

But this “phased increase in prices towards international market prices” will make it necessary to compensate low-income consumers.

Household Allowance

Indeed, the planned reforms between 2017-2020 “will significantly impact vulnerable household segments of the society, directly and indirectly”, according to the Fiscal Balance Program.

But it has a plan to soften the blow and in some cases boost the finances of low-income Saudis. The planned national Household Allowance aims to protect low- and medium-income households against the direct and indirect impact of the planned reforms.

Not only will this scheme compensate such households for the steeper costs of energy and water, it will also reward sensible energy consumption, the Fiscal Balance Program states.

“Instead of benefits that are built-in discounted prices of energy products, we will introduce bank transfers to the eligible households that will allow us to better redistribute benefits to the deserving households,” it stated.

“Today most of the vulnerable Saudi household segments are modest consumers. The allowance will cover the costs of sensible consumption, but those who currently consume more than these levels will need to moderate their consumption in order to limit the impact on their disposable income.”

Who can claim?

The principles of this cash allowance scheme have been based on “global success stories”, which suggest cash and bank transfers are the most efficient ways to target eligible recipients, and provide savings opportunities to households if they consume and spend wisely.

The first payment should be made before changing energy prices, according to the global best practices, to ensure that Saudi households can plan their expenditure ahead of price changes and feel relieved. And the amount should vary based on the number of people in a household and their income level.

The Household Allowance plan is open to mainly Saudi national households made up of first degree relatives. “The main beneficiaries of this program include Saudi households along with other segments, such singles who are living independently of their families, the non-Saudi household with a Saudi mother, and holders of a transit permit,” the Fiscal Balance Program states.

The value of the allowance is based on energy and water prices as well as other basic goods, to account for any indirect price rises.

The larger the size of the household, the greater the basic entitlement. In addition, the entitlement amount will be reduced for households with higher income levels — and those on the highest incomes will not have any entitlement at all.

The Ministry of Labor and Social Development responded to Saudi citizens’ many inquiries on social media over the unified “Citizens’ Account Program”, of which the Household Allowance scheme will be part. This will develop to become a comprehensive program that includes all different types of programs and government benefits.

These unified citizen accounts are for groups including Saudi families, unmarried individuals, Saudi mothers married to non-Saudis, and holders of free-movement cards, those that live near borders and have free movement between neighboring countries such as Yemen.

The ministry said on Twitter that the monthly income of the families will be the key factor to be considered. It called on Saudi citizens to shun listening to rumors and take news from credible sources such as the ministry’s call center.

How much will recipients get?

The Fiscal Balance Program gave an illustration on how the allowance could impact a household of six people in 2017, based on five income brackets.

The example showed that a household with an average income of SR4,500 a month would have an extra financial burden of SR450 a month due to higher energy and water prices. But they could receive an average allowance of SR700, leaving them SR250 a month better off.

But a household of six with an average income of SR34,500 a month would have an extra financial burden of SR1,100 a month, and not be entitled to an allowance.

“We will be spending generously, to ensure that we appropriately cover eligible Saudi households,” the Fiscal Balance Program documents state.

“The amount of Household Allowance will increase each year from 2017-2020 with the annual increase in burden on households resulting from gradual reforms. It is expected that the total annual amount of allowances will reach SAR60-70bn in 2020.”

On 1 Feb. 2017, a registration portal will be opened for the scheme, while all eligible social security recipients relevant to the Ministry of Labor and Social Development will be automatically registered.

All eligible beneficiaries will receive their first payment prior to implementing the new price changes, according to the Fiscal Balance Program.

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News Network
November 24,2025

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Israel has launched a new act of aggression on a residential neighborhood in Lebanon's capital, Beirut, killing and injuring about two dozen civilians.

The Israeli regime's military said in a statement that its forces carried out a so-called precise strike in a residential apartment in Dahiyeh in the southern suburbs of Beirut on Sunday.

The aggression targeted residential areas, killing at least five people and injuring more than 28 people, Lebanon's Health Ministry said. 

Hezbollah announced the martyrdom of senior Hezbollah commander Haytham Ali Tabatabai and four resistance fighters.

Lebanese President Michel Aoun condemned the airstrike, calling it a clear demonstration of Tel Aviv’s disregard for repeated international calls to halt violations on Lebanese soil.

“Israel refuses to implement international resolutions and all efforts aimed at ending the escalation and restoring stability,” Aoun said, urging the international community to take action to prevent further aggression.

The Palestinian Islamic Jihad movement also condemned the attack, holding the international community accountable. 

“The international community bears responsibility and continues to provide cover for these attacks as long as it does not restrain the occupiers,” said Ali Abu Shahin, a member of the group’s political bureau.

Israeli prime minister Benjamin Netanyahu’s office announced that the Israeli army carried out a strike “in the heart of Beirut."

Netanyahu reportedly approved the operation following recommendations from top Israeli security officials.

Two senior US officials commented on the Israeli strike.

The first official said that Israel did not notify Americans in advance about the attack. "We were informed immediately after the strike was carried out."

The second senior official said that the "US knew for several days that Israel was planning to escalate its strikes in Lebanon, but did not know in advance the timing, location, or target of the strike."

Speaking from the site of the Israeli strike, Lebanese MP Ali Ammar condemned the attack as part of a broader campaign of aggression that has targeted "all of Lebanon since the Washington-sponsored ceasefire."

He stated that "any attack on Lebanon is a violation of red lines; this aggression is part and parcel of the entity that targets Lebanon's dignity, sovereignty, and security of citizens."

Ammar went on to say the resistance is responding with "utmost wisdom, patience, and will confront the enemy at the appropriate time."

"Unfortunately, the enemy is emboldened to commit its aggression by voices within Lebanon that have turned themselves into tools that support its aggression," he added.

The Israeli attack on the southern suburbs of the Lebanese capital is the latest blatant violation of the ceasefire Israel signed with Hezbollah in November 2024, which was intended to end hostilities that had escalated into full-scale war.

An Israeli strike on the Ain al-Hilweh camp near Sidon in southern Lebanon late Tuesday killed at least 14 people. It wounded several others, including young students, according to the Lebanese health ministry.

The military claimed the attack targeted “a Hamas training compound” used to plan and carry out attacks against the regime -- a claim that has frequently been made without evidence.

Hamas rejected the allegations as “a blatant lie aimed at justifying the massacre,” stating it had “no military installations in the Palestinian camps in Lebanon” and that the targeted site was merely “an open sports field.”

According to Lebanese authorities, Israeli attacks have killed approximately 4,000 people and displaced more than 1.2 million residents across the country since October 2023.

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News Network
November 28,2025

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Several Syrians were killed and more than two dozen others injured in Israeli strikes on the outskirts of Damascus, amid intensified incursions by the occupying regime since the fall of former president Bashar al-Assad and the rise of Hayat Tahrir al-Sham (HTS) rule.

Syrian state TV reported that the casualties occurred during an overnight Israeli assault involving helicopters and drones on the town of Beit Jinn in the Damascus countryside. The attack followed an Israeli military unit’s entry into the town, where they were surrounded by local residents, leading to gunfire and direct confrontations.

According to the report, “The occupation army’s helicopters and artillery shelled Beit Jinn, located at the foothills of Mount Hermon, resulting in 13 martyrs and 25 injured civilians.” The broadcaster did not specify the full extent of damage.

Al-Ikhbariyah Syria confirmed that the shelling coincided with Israeli soldiers entering Beit Jinn, while artillery pounded surrounding areas. The broadcaster stated that the escalation began after local residents clashed with an Israeli patrol that had infiltrated the southern town and “kidnapped” three young men.

Following a two-hour exchange of heavy fire, Israeli forces withdrew and repositioned on the hill of Butt al-Warda at the town’s outskirts.

Israeli media acknowledged that six soldiers were wounded in the clashes—three of them seriously—describing the confrontation as a “sudden ambush” that forced the deployment of reserve units and air support to secure an exit route. No further details were provided.

The aggression has fueled renewed displacement from Beit Jinn, with residents fleeing to nearby villages amid increasingly frequent Israeli attacks.

The raid came just a day after Israeli troops carried out another ground incursion into Umm al-Luqas village in Quneitra province. According to SANA, an Israeli unit in four vehicles entered the village, raided several homes, and later withdrew.

Syria condemned the repeated incursions as violations of the 1974 Disengagement Agreement and UN resolutions, urging the international community to enforce compliance and pressure Israel to halt its operations and withdraw fully.

Israel has expanded its attacks across Syrian territory following the collapse of the Assad government last year. Prime Minister Benjamin Netanyahu has reportedly instructed his forces to push deeper into Syrian territory and seize strategic positions.

Meanwhile, critics say the HTS-led interim government’s inaction and growing normalization gestures toward Israel have emboldened Tel Aviv to intensify its military operations. HTS, formerly linked to al-Qaeda, seized control of Damascus last December, formally ending Assad’s rule.

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News Network
November 30,2025

The United Nations Committee against Torture (CAT) has condemned the Israeli regime for enforcing a policy of “organized torture” against Palestinians.

In a report published on Friday, CAT stated that the occupying regime enforces a deliberate policy of “organized and widespread torture and ill-treatment” against Palestinian abductees, particularly since October 7, 2023, when Israel launched its genocidal war on Gaza.

The committee expressed “deep concern over repeated severe beatings, dog attacks, electrocution, water-boarding, use of prolonged stress positions [and] sexual violence” inflicted on Palestinians.

Palestinian prisoners were degraded by “being made to act like animals or being urinated on,” systematically denied medical care, and subjected to excessive restraints, “in some cases resulting in amputation,” the report added.

CAT also condemned the routine application of “unlawful combatants law” to justify the prolonged detention without trial of thousands of Palestinian men, women, and children.

More than 10,000 Palestinians, including women and children, are currently held in Israeli prisons, according to Palestinian and international human rights groups, with 3,474 Palestinians in “administrative detention,” meaning they are imprisoned without trial for indefinite periods.

The report highlighted the “high proportion of children who are currently detained without charge or on remand,” noting that while Israel sets the age of criminal responsibility at 12, even younger children have been abducted.

Children designated as security prisoners face severe restrictions on family contact, may be subjected to solitary confinement, and are denied access to education, in clear violation of international law.

The committee further suggested that Israel’s policies across the Occupied Territories constitute collective torture against the Palestinian population.

“A range of policies adopted by Israel in the course of its continued unlawful presence in the Occupied Palestinian Territory amounts to cruel, inhuman or degrading living conditions for the Palestinian population,” the report said.

On Thursday, the Palestinian resistance movement Hamas condemned the systematic killing and torture of Palestinian abductees in Israeli prisons, urging international action to halt these abuses.

Citing human rights data, Hamas stated that 94 Palestinians have been killed in Israeli prisons since the start of Tel Aviv’s genocidal war on Gaza.

“This reflects an organized criminal approach that has turned these prisons into direct killing grounds to eliminate our people,” the resistance movement said.

Hamas called on the international community, the UN, and human rights organizations to immediately pressure Israel to end crimes against prisoners and uphold their rights as guaranteed by all international conventions and norms.

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