Saudi Arabia’s Ministry of Finance has released the Pre-Budget Statement for Fiscal Year 2025, forecasting total expenditures at SR1.285 trillion ($342.7 billion) and revenues at SR1.184 trillion ($315.7 billion), resulting in a 2.3% GDP deficit. This reflects the Kingdom’s ongoing commitment to economic diversification and sustainable growth.
The statement projects expenditures to rise to SR1.429 trillion ($381 billion) by 2027, with revenues also increasing to SR1.289 trillion ($343.7 billion). The Ministry noted that despite these projections, the Saudi economy remains robust, driven by growth in non-oil sectors such as tourism, entertainment, logistics, transportation, and industry. These sectors have bolstered the quality of life, reduced unemployment, and empowered the private sector, contributing to positive outlooks from international organizations and credit rating agencies.
Mohammed Aljadaan, Saudi Arabia’s Minister of Finance, emphasized the government’s strategic spending on critical services and infrastructure projects that align with Vision 2030, aimed at achieving sustainable economic development.
He added that the reforms and projects undertaken as part of this vision are set to diversify the Kingdom’s economic base, create jobs, and attract investment, ensuring positive growth rates in the years ahead.
The statement also highlighted expectations for 2024, including a real GDP growth of 0.8% and 3.7% growth in non-oil sectors. The inflation rate is projected to reach 1.7% by the end of 2024, supported by a reduction in interest rates, which is expected to boost demand.
Aljadaan further reiterated that the Saudi economy is resilient, capable of managing global challenges, with strong fiscal reserves and flexible public debt policies. He confirmed that the government will continue borrowing to finance the 2025 deficit and ensure the sustainability of public debt, with strategic financing activities being explored.
The seventh consecutive Pre-Budget Statement reflects Saudi Arabia’s commitment to fiscal transparency, aimed at maintaining investor confidence and positioning the country as a regional economic leader
