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.



Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
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Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 

Saudi Arabia’s ambitious economic diversification drive under Vision 2030 continues to deliver solid results, with the National Industrial Development and Logistics Program (NIDLP) reporting a significant contribution of $262 billion to the Kingdom’s non-oil GDP in 2024.

According to NIDLP’s annual report, the program’s activities contributed 986 billion Saudi riyals ($263 billion), representing 39% of the non-oil GDP. This marks a rise from 949 billion riyals ($253 billion) in 2023. Overall, non-oil activities accounted for about 55% of the Kingdom’s total GDP.

The report highlights substantial growth in core NIDLP sectors. The manufacturing sector expanded by 4%, while mining, transportation, and storage sectors saw a 5% increase.

Non-oil exports surged to 514 billion riyals ($137 billion), reflecting a 13.2% year-on-year increase. These exports included 217 billion riyals ($58 billion) in goods, 91 billion riyals ($24.3 billion) in re-exports, and 207 billion riyals ($55.2 billion) in service exports. Among the leading manufactured exports were chemical products at 78.5 billion riyals ($20.9 billion), metals and metal products at 23.3 billion riyals ($6.2 billion), food and beverages at 10.5 billion riyals ($2.8 billion), and electrical equipment exports reaching 42.9 billion riyals ($11.4 billion).

Employment in sectors under the NIDLP umbrella reached 2.43 million workers in 2024, with 508,000 new jobs created, 81,000 of which were taken up by Saudi nationals.

Private sector investment in NIDLP industries totaled 665 billion riyals ($177.3 billion). The Saudi Industrial Development Fund approved loans worth 198 billion riyals ($52.8 billion), while the Saudi Export-Import Bank provided credit facilities valued at 69.14 billion riyals ($18.4 billion).

By the end of 2024, the number of industrial facilities in the Kingdom reached 12,500, while ready-built factories totaled 1,511. Cumulative investments in industrial cities and special economic zones reached 1.412 trillion riyals ($376.5 billion).

Domestic military industries also recorded notable gains, with local sales totaling 34.32 billion riyals ($9.15 billion). The Kingdom continues to push for localization across value chains, including sectors like medical supplies, automotive manufacturing, energy products, and petrochemicals.

Saudi Arabia launched renewable energy projects with a combined capacity of 20 gigawatts in 2024. New solar power agreements were signed for an additional 3.7 GW, while 3.6 GW of new capacity was brought online. A record-low global price for wind energy was achieved, contributing to an annual reduction of 1.7 million tons in carbon emissions.

In the mining sector, exploration spending rose to 228 riyals ($60.8) per square kilometer. Competitive bidding for mining sites increased by 380% compared to the previous year. The sector is targeting a GDP contribution of 176 billion riyals ($46.9 billion) and the creation of 219,000 jobs by 2030.

Logistics continues to emerge as a strategic pillar of the Saudi economy. In 2024, the government issued 1,056 logistics licenses and expanded re-export centers from just 2 in 2019 to 23. Port utilization rose to 64%, while customs clearance times dropped to a mere two hours, strengthening Saudi Arabia’s bid to become a global logistics hub.

The program also exceeded key 2024 benchmarks. The localization rate of the defense industry reached 19.35%, surpassing the 12.5% target. Local content reached 1.23 trillion riyals ($328 billion), above the targeted 1.11 trillion riyals ($296 billion). Emerging industries recorded exports worth 135.6 billion riyals ($36.2 billion), with 3,100 final licenses issued, well above the target of 845 licenses.

The NIDLP currently oversees 284 initiatives, 163 of which have been completed, marking a 57% completion rate. This reflects the program’s strong progress in driving forward Vision 2030’s industrial and economic goals.