The Saudi Ministry of Finance recently announced the Pre-Budget Statement for Fiscal Year 2025, revealing that total expenditures are estimated to reach SR 1,285 billion, with total revenues reaching SR 1,184 billion, resulting in a deficit of SR 101 billion. Despite this deficit, representing 2.3 percent of the GDP, the government will continue strategic transformational spending to achieve economic diversification and sustainable growth. The statement highlighted the government’s efforts to enhance stability and sustainability through financial and economic initiatives, leading to positive GDP growth rates supported by the growth of non-oil activities.
The Ministry emphasized the prosperity of promising sectors such as tourism, entertainment, transportation, logistics, and industry, which have improved the quality of life, empowered the private sector, and reduced unemployment rates. The positive growth and development have garnered international recognition and expectations, with the Saudi economy projected to record positive growth rates in 2025 and beyond as a result of ongoing reforms and projects under Saudi Vision 2030. Minister of Finance Mohammed Al-Jadaan reiterated the government’s commitment to essential services, strategic projects, and sustainable growth, highlighting the importance of public finance flexibility in facing challenges while leveraging the role of funds like the Public Investment Fund and National Development Fund.
Al-Jadaan also addressed the encouraging forecast for the Saudi economy in 2025, showcasing the Kingdom’s resilience in the face of global economic challenges and geopolitical tensions. Despite the slowdown in global economic growth, Saudi Arabia’s fiscal position remains robust with optimal government reserves and manageable public debt levels. The government plans to continue borrowing as part of the approved annual plan to finance the expected budget deficit and ensure debt sustainability. Additionally, the government will explore market opportunities for alternative financing activities to implement programs and projects in line with Saudi Vision 2030 goals.
For the seventh consecutive year, the Pre-Budget Statement brings transparency to public finance and enhances fiscal disclosure in line with the government’s commitment to strengthen its fiscal position and address global economic challenges. The statement predicts a growth in real GDP of 4.6 percent in 2025, signaling the Kingdom’s dedication to its ambitious strategies and sustainable development goals, which in turn boost investor confidence and elevate Saudi Arabia’s economic standing regionally and globally. The government’s long-term fiscal planning strategy ensures a focus on maintaining strategic spending for economic gains and sustainable growth, with a flexible spending policy to navigate future crises.
