2025 budget maintains expansionary approach: Al-Jadaan

Finance Minister Mohammed Al-Jadaan

Finance Minister Mohammed Al-Jadaan highlighted the 2025 budget’s expansionary approach, aimed at enhancing public services and driving economic growth. He noted the focus on impactful strategies to boost jobs, business opportunities, and economic sustainability while advancing projects initiated in recent years.

Non-oil revenues surged 154% since 2016 to SAR 472 billion in 2024, reflecting the economy’s reduced dependence on oil market fluctuations. Budget expenditure remains stable, underpinned by strong non-oil revenue growth.

Oil’s share of gross domestic product (GDP) stands at 28%, while private sector investment contributes 24%.

Private investment’s GDP share has grown 52.5% since 2016 to 24.7%, marking a structural shift. Saudi employment in the private sector also rose 23.4% over the same period.

Tourism has emerged as a key economic driver, creating jobs and bolstering the balance of payments. It now ranks as the second most impactful sector after oil.

Al-Jadaan said the 2025 deficit is part of planned fiscal strategy, with financing through local and international markets. The approach includes leveraging opportunities to support growth via major projects and Vision 2030 initiatives.

Public debt is projected to reach SAR 1.3 trillion in 2025 (29.9% of GDP) from SAR 1.2 trillion in 2024 (29.3% of GDP). Government reserves at the Saudi Central Bank (SAMA) are expected to remain stable at SAR 390 billion by the end of 2025.

Economic reforms have strengthened Saudi Arabia’s financial stability and diversification, with non-oil activities continuing to drive GDP growth in 2024. Private sector contributions are expanding, solidifying its role as a key economic engine.

Projects like NEOM, Red Sea, Qiddiya, and Diriyah Gate are funded by the Public Investment Fund (PIF) and its subsidiaries, not the state budget. Al-Jadaan stressed sustainable funding for public finance strategies and dismissed overemphasis on individual projects, highlighting the successful launch and efficient execution of initiatives like the Red Sea and Diriyah Gate.