Saudi Crown Prince: 2025 Budget Underscores Continued Spending on Basic Services

Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister. (SPA)
Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister. (SPA)
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Saudi Crown Prince: 2025 Budget Underscores Continued Spending on Basic Services

Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister. (SPA)
Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister. (SPA)

Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, said on Tuesday the preliminary statement for the 2025 state budget emphasized the continued enhancement of spending directed toward essential services for citizens and residents, as well as the implementation of strategic projects. He also stressed the focus on supporting economic growth and achieving sustainable development.

He made his remarks at a weekly cabinet meeting that discussed the latest developments in the region and the world, as well as the outcomes of regional and international meetings held in this regard.

The preliminary statement for Saudi Arabia's 2025 fiscal year budget projected total expenditures to reach approximately SAR 1.285 trillion, with revenues expected to be around SAR 1.184 trillion, resulting in a deficit of 2.3% of the gross domestic product (GDP).

The statement also highlighted the government's continued adoption of strategic expansionary spending policies aimed at supporting economic diversification and sustainable growth, as well as ongoing borrowing to meet the projected financial needs for 2025.

Experts told Asharq Al-Awsat that budget estimates for 2025 emphasize continued spending on basic services such as education, healthcare, social protection, and developmental projects. This will bolster social welfare programs that directly benefit citizens, as well as support the national economy's growth and resilience.

Dr. Ossama al-Obeidi, expert and professor of commercial law, said the 2025 budget focuses on accelerating the implementation of Vision 2030 projects and programs, while maintaining efforts aimed at ensuring fiscal sustainability, which includes achieving financial surpluses and diversifying revenue sources by continuing to boost non-oil revenues. This reflects the Kingdom's strategic approach to adapting to global economic changes, he underlined.

The budget allocation also includes strengthening the infrastructure of major sectors, creating more job opportunities for citizens, and improving the quality of life for the residents.

Finance Professor at the Imam Mohammad Ibn Saud Islamic University Dr. Mohammed Makni emphasized that the deficit in the 2025 state budget was limited, reaching around $26.9 million. He stressed that the Kingdom will continue its ambitious economic and development reforms, by supporting innovative projects across various sectors as part of Vision 2030.

Regarding the current year, “there is also a slight deficit in the general budget, but non-oil revenues are expected to increase by more than 3 percent,” according to Makni.

He said the main indicators focus on levels of consumer spending, which have been growing in the Kingdom, as well as unemployment indicators in the country, which have been declining in recent periods.

He further noted that the oil sector had been struggling during previous periods due to the policies adopted by OPEC and OPEC+, as well as the voluntary cuts implemented by the Kingdom. However, it is expected to recover between 2025 and 2027.

The Kingdom has adopted a policy of reprioritizing spending and focusing on projects that can be completed more quickly, so they can become a source of support for the national economy in the years leading up to 2030. These policies will also enable both foreign and local investors to expand and achieve their profitability goals.

Makni added that the reforms implemented by the Kingdom have become directly tangible and have led to significant improvements in many sectors at the level of systems and regulations.



IATA: Air Cargo Demand Up 2.2% Despite Trade Disruptions

The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
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IATA: Air Cargo Demand Up 2.2% Despite Trade Disruptions

The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 

Total air cargo demand, measured in cargo ton-kilometers (CTK), rose by 2.2% compared to May 2024 levels, up 3.0% for international operations, according to the International Air Transport Association (IATA).

Also, capacity, measured in available cargo ton-kilometers (ACTK), increased by 2% compared to May 2024, up 2.6% for international operations.

The Association said several factors in the operating environment should be noted, including year-on-year world industrial production, which rose 2.6% in April 2025.

Meanwhile, air cargo volumes grew 6.8% over the same period, outpacing global goods trade growth of 3.8%.

IATA said jet fuel prices in May 2025 were 18.8% lower than the previous year and 4.3% below the previous month.

It noted that global manufacturing contracted in May, with the PMI falling to 49.1, below the 50 mark that signals growth.

New export orders also remained in negative territory at 48, reflecting pressure from recent US trade policy changes, the Association revealed.

Global manufacturing output, measured by the PMI, dropped below the 50 threshold to 49.1 in May, for the first time in 2025.

This, IATA said, was a 6.9% year-on-year decrease and a 2.8% drop compared to April 2025, indicating a slight weakening in global manufacturing production compared to April 2025.

Meanwhile, output declined in May, new export orders grew 1.6 index points from April, to 48. New export orders have been directly affected by the US trade policy changes, which have reshaped global demand dynamics and impacted trade flows.

Willie Walsh, IATA’s Director General, said the rise of cargo demand globally by 2.2% in May is encouraging news as a 10.7% drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting US trade policies.

“Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries,” he said.

Meanwhile, carriers in the Middle East continued to build momentum, expanding for the second consecutive month. The region recorded a 3.6% year-on-year rise and capacity increased by 4.2%.

Asia Pacific posted the strongest growth, up 8.3% year-on-year while capacity increased by 5.7%.

In return, North American carriers saw a -5.8% year-on-year decrease in growth for air cargo in May, the slowest growth of all regions. Capacity decreased by -3.2%.

European carriers saw 1.6% year-on-year demand growth for air cargo in May. Capacity increased 1.5%.

Also, Latin American carriers saw a 3.1% year-on-year increase in demand growth for air cargo in May. Capacity increased 3.5%.

As for African airlines, they saw a 2.1% year-on-year decrease in demand for air cargo in May. Capacity increased by 2.7%.

Trade Lane Growth

A significant decrease in the Asia-North America trade lane was expected and realized as the effect of front-loading faded and changes to the de-minimis exemption on small package shipments were enforced.

As cargo flows reorganized, several route areas responded with surprising growth, IATA said.