Riyadh: Minister of Finance Mohammed Al-Jadaan emphasized the directives of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud to ensure the implementation of the Saudi Arabia-Budget 2025 with high efficiency, aligning it with its goals. He highlighted the budget’s role in enhancing public services, creating business opportunities, and empowering the private sector.

According to Saudi Press Agency, Al-Jadaan, during a news conference in Riyadh, reaffirmed the resilience of Saudi Arabia’s economy in navigating global challenges. Despite geopolitical issues, the Kingdom’s non-oil economy has shown significant growth. Nominal GDP grew by 64% from 2016 to 2023, reaching SAR4.1 trillion. Non-oil GDP growth is forecasted at 4.6% in 2025, with inflation rates remaining at 1.7% this year, below global averages.

The minister noted a 52% growth in private investment contributions to GDP since Vision 2030’s launch. For 2024, non-oil GDP is expected to reach 3.7%, driven by public and private-secto
r investments. The fiscal year 2024 projections include expenditures of SAR1.345 trillion and revenues of SAR1.23 trillion, resulting in a SAR115 billion deficit. The government focuses on expansionary spending in key sectors to stimulate the economy and create jobs.

Al-Jadaan confirmed a 2.7% spending increase in the 2025 budget, expecting expenditures around SAR1.285 trillion and revenues at SAR1.184 trillion, with a SAR101 billion deficit. The budget will allocate SAR526 billion to education, health, social development, and municipal services. Medium-term revenues are cautiously projected, with expected expenditures growing to SAR1.429 trillion by 2027.

He emphasized the importance of investing in citizens and public services for long-term economic sustainability. The budget deficit is projected to reach SAR140 billion by 2027. Key structural changes, such as economic cities and infrastructure projects, are contributing to the rise in non-oil activities, which now account for 52% of GDP.

Al-Jadaan highl
ighted the role of private investment, non-oil exports, and the tourism sector in the economy, with tourism revenues projected to exceed SAR48 billion in 2024. Major projects, including King Salman Park and NEOM, are part of Vision 2030’s goals. The industrial sector, along with transportation and logistics, plays a critical role in economic growth. Energy and military sectors are also pivotal, with the Ministry of Defense executing a ten-year plan.

The minister discussed borrowing as a financing method, with debt levels remaining lower than most G20 countries. He noted significant compensations for property removals and the strategic offering of Aramco shares to boost the Public Investment Fund’s capacity. The government continues to support citizens through healthcare, education, and infrastructure, with substantial allocations in the budget.

Al-Jadaan concluded by expressing gratitude for the leadership’s support and pride in the efforts of security personnel and government employees in achieving Saudi V
ision 2030’s objectives.