Saudi budget prioritizes services and growth in key economic sectors 
The Ministry of Finance has released Saudi Arabia’s 2025 budget, with estimated revenues of SR1,184 billion ($315 billion) and expenditure of SR1,285 billion, resulting in a predicted deficit of SR101 billion — around 2.3 percent of gross domestic product.
Despite global political turmoil, high inflation and interest rates, and a substantial rise in global debt, the budget highlights significant achievements in the Saudi economy — particularly in the non-oil sector — supported by structural economic reforms.
Initial projections indicate a real GDP growth rate of 0.8 percent in 2024 and 4.6 percent, 3.5 percent, and 4.7 percent in 2025, 2026 and 2027 respectively, driven mainly by an increase in non-oil activities, which are expected to grow at an average rate of 6 percent over the next three years.
The 2025 budget projections also show significant progress toward Saudi Vision 2030 objectives, particularly in promising sectors such as tourism.
Saudi Arabia’s tourism sector has surged by 656 percent since 2019, and the Kingdom welcomed 17.5 million international visitors in 2024, according to the Ministry of Tourism.
Additionally, arts and entertainment activities showed a remarkable 106 percent increase between 2021 and 2022, while other sectors, such as accommodation, food services, transportation, and storage, also experienced strong growth.
Non-oil activities now reportedly account for more than 50 percent of the Kingdom’s real GDP, hitting a record SR472 billion in 2024, up from SR186 billion at the launch of Saudi Vision 2030.
The Saudi government is advancing Vision 2030 through reforms and initiatives to diversify the economy, boost investments and private consumption, and strengthen the private sector’s role in sustainable development.
The notable contribution of non-oil sectors is due to a surge in private-sector investment over the past two years, with a remarkable growth rate of 57 percent, pushing private investment to a record SR959 billion in 2023.
Saudi Arabia has strengthened its economic position by attracting substantial foreign direct investment, which reached SR21.2 billion in the first half of 2024, with 5,885 investment licenses issued by the Ministry of Investment over the same period, an increase of around 70 percent year-on-year.
The Kingdom also continues to enhance its efforts to develop the industrial sector as a key economic pillar through the National Industrial Strategy, which aims to establish an integrated regional industrial hub to meet demand by focusing on 12 sectors, diversifying the industrial economy, and doubling both industrial GDP to SR895 billion and the value of industrial exports to SR557 billion by 2030.
The government remains committed to supporting basic public needs by ensuring a decent standard of living, improving quality of life, and enhancing public services. A total of SR526 billion has been allocated in the 2025 budget to education, health, social development and municipal services.
This was reflected in the 7.5 percent increase in total expenditure for 2024 compared to the approved budget, demonstrating the government’s commitment to completing transformational initiatives and strategic projects aimed at achieving comprehensive development across all sectors and regions of the Kingdom, while continuing to implement projects with economic returns.
The Saudi government continues its efforts to achieve the goals of Vision 2030 by implementing initiatives and reforms to diversify its economic base, increase investment levels and private consumption, and empower the private sector to play a stronger role in achieving economic stability and sustainable development.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
