Saudi Arabia Releases Pre-Budget Statement for 2025 with Estimated $316bn in Revenues and $343bn in Spending

The Saudi Ministry of Finance has shared its Pre-Budget Statement for 2025. The government expects to spend SAR 1.285 trillion ($342.7 billion) and earn SAR 1.184 trillion ($315.7 billion) in revenue, resulting in a budget deficit of about 2.3% of the country’s GDP.

The government plans to keep spending on important projects that will help grow and diversify the economy. By 2027, they expect revenue to increase to SAR 1.289 trillion ($343.7 billion), while spending could rise to SAR 1.429 trillion ($381 billion).

Economic Developments and Growth Projections

The statement emphasized that Saudi Arabia’s economy, boosted by growth in non-oil sectors like tourism, entertainment, transportation, logistics, and industry, is expected to continue growing positively. As a result of this diversification, the country is improving the quality of life, strengthening the private sector, and reducing unemployment to record lows.

Moreover, international organizations and credit rating agencies have acknowledged this strong economic outlook, further confirming Saudi Arabia’s solid performance.

Looking ahead to 2024, the government expects real GDP to grow by 0.8%, mainly due to a 3.7% rise in non-oil activities. Furthermore, a decrease in interest rates is likely to increase demand, contributing to additional economic growth. Inflation is expected to remain moderate, around 1.7%, by the end of 2024.

Focus on Strategic Spending and Development

Saudi Finance Minister Mohammed Aljadaan stressed the government’s commitment to essential services and strategic projects aimed at enhancing economic growth and sustainable development. He reaffirmed that the ongoing reforms under Saudi Vision 2030 would continue to diversify the economy, foster private sector growth, and create new job opportunities.

Aljadaan explained that the government’s long-term fiscal planning ensures strategic spending will result in sustainable economic gains. He emphasized that public finances remain flexible and capable of adapting to medium- and long-term challenges.

Role of Public Investment and Debt Management

The minister also highlighted the role of key entities like the Public Investment Fund (PIF) and the National Development Fund (NDF) in supporting economic stability. The strength of Saudi Arabia’s fiscal position, with substantial government reserves and manageable public debt levels, showcases the country’s ability to withstand global economic challenges and geopolitical tensions.

Looking ahead, the government plans to continue borrowing under its approved annual borrowing plan to finance the budget deficit and repay debt due in 2025. Additionally, it will seek market opportunities for alternative financing while carefully managing the public debt portfolio to ensure sustainability. This aligns with the government’s strategy to accelerate the implementation of key programs under Vision 2030.

Transparency and Fiscal Disclosure

The 2025 Pre-Budget Statement is the seventh consecutive release as part of Saudi Arabia’s efforts to enhance fiscal transparency. It reflects the government’s dedication to implementing reforms that strengthen the country’s financial position amidst global economic challenges.

With an estimated real GDP growth of 4.6% in 2025, the statement underscores Saudi Arabia’s ongoing commitment to sustainable development, bolstering investor confidence and elevating the Kingdom’s regional and global economic standing.