The Saudi Ministry of Finance has released the 2025 Budget Statement, outlining total expenditures of SAR 1.28 trillion and total revenues of SAR 1.18 trillion. This results in a projected deficit of SAR 101 billion, equivalent to 2.3% of GDP.
Spending priorities for 2025
Minister of Finance Mohammed Al-Jadaan stated that the government aims to expand strategic spending in line with Vision 2030. Key allocations include education, health, social services, infrastructure development and social support systems. The budget also supports projects designed to enhance trade balances, attract domestic and foreign investments, and improve the overall business environment.
Spending will focus on sectors aligned with Vision 2030 strategies, including development initiatives aimed at creating sustainable economic, social, and environmental returns. Al-Jadaan reiterated that citizen welfare remains a priority, with spending targeted toward improving government services, facilities, and quality of life across the Kingdom.
Deficit and debt management
The SAR 101 billion deficit for 2025 is part of the government’s fiscal planning strategy. To address this, the government will continue domestic and international fiscal operations, including debt repayment and leveraging market opportunities to support economic growth. Public debt is projected to rise to SAR 1.30 trillion (29.9% of GDP) by the end of 2025, up from SAR 1.19 trillion (29.3% of GDP) in 2024.
Government reserves at the Saudi Central Bank (SAMA) are expected to remain stable at SAR 390 billion by the end of 2025. These measures aim to maintain financial stability and the Kingdom’s ability to manage external economic shocks.
Economic diversification and growth
The 2025 budget reflects progress in Saudi Arabia’s economic reforms and diversification efforts under Vision 2030. Preliminary forecasts for 2024 indicate that non-oil activities are increasingly driving real GDP growth, supported by initiatives to boost private sector contributions. The government continues to prioritise private sector development as a key engine of economic growth.
Efforts to improve the labour market have led to a decline in unemployment among Saudis to a historic low of 7.1% by the second quarter of 2024. Women’s participation in the labour force has reached 35.4%, surpassing Vision 2030’s target of 30%. These outcomes are attributed to labour market reforms, the empowerment of the private sector, and the diversification of economic opportunities.
Global economic context
Al-Jadaan noted that the global economy is recovering, but geopolitical conflicts continue to pose risks. Despite these challenges, Saudi Arabia has maintained its financial position and continued its development projects, supported by effective fiscal policies.
The government’s fiscal strategy focuses on maintaining financial stability, managing public debt, sustaining reserves and ensuring preparedness for domestic and global economic uncertainties.
The 2025 budget underscores Saudi Arabia’s focus on economic transformation, sustainable growth, and diversification through Vision 2030 initiatives, aiming to achieve long-term fiscal and economic stability.
