Saudi Arabia's 2025 Budget: A Balancing Act Amid Oil Revenue Challenges

Saudi Arabia has approved its 2025 budget, anticipating a fiscal deficit as it invests in Vision 2030 projects aimed at reducing oil dependency. Total expenditure is projected at 1.285 trillion riyals, with revenue at 1.184 trillion riyals, prompting a focus on strategic economic transformation despite declining oil revenues.

Saudi Arabia has approved its budget for 2025, forecasting a fiscal deficit of 101 billion riyals ($26.88 billion). This comes as the kingdom continues to invest in massive projects aimed at reducing dependency on oil, part of its Vision 2030 economic transformation plan.

Total expenditure for 2025 is projected at 1.285 trillion riyals, equating to about 30% of GDP over the next three years. Revenue is forecast at 1.184 trillion riyals, amid challenges like declining oil prices and production cuts. The government remains focused on strategic spending to boost growth.

The ambitious Vision 2030 includes infrastructure development and diversification into new sectors like tourism. However, some projects under Vision 2030, such as NEOM, will see scaled-back ambitions to prioritize essential elements.

(With inputs from agencies.)