Saudi Arabia's 2025 Budget Forecasts a Deficit of SAR 101 Billion

The Ministry of Finance has released its preliminary fiscal year budget for 2025, revealing an expected deficit of SAR 101 billion. With projected expenditures reaching SAR 1.285 trillion and revenues of SAR 1.184 trillion, the deficit accounts for approximately 2.3% of the Kingdom’s gross domestic product.

Economic growth in the country continues to be driven by non-oil sectors, particularly tourism, entertainment, transportation, logistics and industry. These sectors have been instrumental in improving the quality of life and reducing unemployment rates to historic lows.

Despite the projected deficit, the Kingdom remains committed to maintaining robust spending on essential services and strategic projects, including sustainable development. The Ministry of Finance also highlighted that Saudi Arabia’s economy is expected to experience positive growth in 2025, with real GDP growth estimated at 4.6%.

Public finances are viewed as flexible and resilient, capable of withstanding economic pressures in the medium and long term. The Kingdom's financial stability is further supported by key institutions such as the Public Investment Fund and the National Development Fund, which play significant roles in fostering economic growth and stability.

To address the projected deficit, the government plans to borrow in 2025, with an emphasis on managing public debt at sustainable levels. Additionally, alternative financing methods are being explored to support Vision 2030 projects to further contribute to the Kingdom’s economic transformation and stability.