RIYADH: The Saudi Ministry of Finance announced the Budget Statement for Fiscal Year 2025, charting an ambitious course of economic diversification and strategic spending that underscores the Kingdom’s commitment to Saudi Vision 2030. The budget estimates total expenditures of SAR 1,285 billion, and total revenues of SAR 1,184 billion. These estimates indicate a deficit of SAR 101 billion, which represents about 2.3% of Gross Domestic Product (GDP).
- Fiscal Highlights:
Total Revenues: SAR 1,184 billion
Total Expenditures: SAR 1,285 billion
Projected Deficit: SAR 101 billion
Finance Minister Mohammed Aljadaan positioned the budget deficit not as a financial weakness, but as a calculated investment in national economic transformation. The strategic spending prioritizes infrastructure, innovation, and sector diversification.
Key Economic Indicators
Labor Market Dynamics: Unemployment rate plummeted to a historic low of 7.1%. Women’s workforce participation surged to 35.4%, exceeding Vision 2030 targets. Signals robust labour market reforms and inclusive economic policies
Debt and Reserves Management: Projected public debt: SAR 1,300 billion (29.9% of GDP). Maintained government reserves: SAR 390 billion. Demonstrates fiscal prudence and financial stability
Investment and Growth Vectors: Continued support for Vision 2030 development projects. Focus on attracting domestic and international investments. Emphasis on private sector empowerment and economic diversification
Despite ongoing geopolitical tensions, Saudi Arabia maintains a confident stance, leveraging strategic fiscal policies to navigate potential economic headwinds.
The budget signals continued commitment to economic restructuring, potentially attracting international investor attention and signaling Saudi Arabia’s economic resilience.
The 2025 budget represents a sophisticated balancing act—investing in future growth while maintaining fiscal discipline, positioning Saudi Arabia as a dynamic emerging market with strategic long-term vision.
This budget is not just a financial document; it’s a blueprint for national economic transformation, reflecting Saudi Arabia’s ambition to emerge as a diversified, innovation-driven economy in the global marketplace.