Saudi Arabia Announces FY 2025 Budget with Focus on Growth and Fiscal Sustainability

KSA, 27 November, 2024 : The Saudi Ministry of Finance announced the FY 2025 Budget Statement, projecting expenditures of SAR 1,285 billion and revenues of SAR 1,184 billion, resulting in a SAR 101 billion deficit, equivalent to 2.3% of GDP.

Minister of Finance, H.E. Mohammed Aljadaan, emphasized the Government’s ongoing commitment to economic transformation under Saudi Vision 2030, highlighting investments in education, health, social services, and infrastructure to enhance the quality of life and improve public services.

The budget focuses on strategic spending for development projects, fostering economic diversification, and increasing non-oil sector contributions to GDP. The unemployment rate among Saudis has reached a historic low of 7.1%, with women’s labor market participation exceeding Vision 2030 targets at 35.4%.

Aljadaan stressed that the deficit aligns with fiscal planning, supported by domestic and international borrowing to manage debt and fund key initiatives. Public debt is expected to reach SAR 1,300 billion by the end of 2025, maintaining sustainable levels relative to GDP.

Despite global economic uncertainties, the Kingdom remains financially robust, advancing its development goals and enhancing its economic resilience through effective fiscal policies.