Following the approval of the Kingdom's general budget for the fiscal year 2025 on Tuesday, Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and Chairman of the Council of Economic and Development Affairs, underscored the Kingdom's significant local, regional, and international achievements, including advanced positions in global indices.
This underlines the robustness of Saudi Arabia's financial standing, the government's success in navigating global economic challenges and its dedication to fulfilling the goals of Vision 2030, he said in a statement.
Crown Prince Mohammed had earlier chaired a cabinet meeting to approve the state budget.
Total expenditure for 2025 is projected at 1.285 trillion riyals, which is the same as projected in September and likely to equate to about 30% of GDP over the next three years. Total revenue is forecast at 1.184 trillion riyals.
The Crown Prince directed ministers and officials to commit, each in his capacity, to implementing the programs, strategies, and development and social projects included in the budget, consistent with the goals of the Kingdom's Vision 2030.
The 2025 budget demonstrates the government's commitment to the country's advancement and citizen welfare, and attributed the nation's accomplishments to God Almighty, to the leadership of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and to the diligent efforts of the Kingdom's citizens, stressed Crown Prince Mohammed.
He emphasized the role of government spending in diversifying the Kingdom's economy by focusing on empowering promising sectors, boosting the investment environment, and stimulating industries. He highlighted the efforts to increase local content and non-oil exports, while continuing to implement programs to realize the Kingdom's Vision 2030 and national strategies, and boosting the private sector's role in contributing to investment projects, an approach that enables the government to maintain its focus on comprehensive and sustainable economic development.
The government's efforts continue, guided by systematic planning for the medium and long term, taking into account regional and global economic developments and challenges to ensure the achievement of strategic goals while preserving economic gains and maintaining financial sustainability.
The Crown Prince stressed that the positive indicators of the Saudi economy are a result of the ongoing reforms under Vision 2030. The Kingdom is projected to have the second-fastest GDP growth rate among major economies next year, estimated at 4.6%. This growth is fueled by the increasing contribution of non-oil activities, which reached a record 52% in 2024.
Additionally, the unemployment rate for Saudis fell to a historic low of 7.1% by the second quarter, nearing the Vision 2030 target of 7%. The participation rate of Saudi women in the labor market rose to 35.4% until the second quarter, surpassing the vision's goal of 30%.
Net foreign investment inflows totaled SAR21.2 billion in the first half of 2024, reflecting the government's commitment, under the leadership of the Custodian of the Two Holy Mosques, to supporting all segments of society.
The Crown Prince underlined the crucial role of the Public Investment Fund and National Development Fund, along with its development funds, in supporting economic stability and driving comprehensive development. These funds are pivotal to diversifying the Kingdom's economy and fostering investment, to achieve the objectives of Vision 2030.
The 2025 budget underscores the commitment to strengthening the robustness and flexibility of the Kingdom's economy, which is growing rapidly and creating unprecedented opportunities, said Crown Prince Mohammed. This is achieved by maintaining sustainable levels of public debt and substantial government reserves, along with a flexible spending policy that enables the Kingdom to address global economic challenges and fluctuations.
He noted that the financial reforms implemented by the Kingdom, through the government's adoption of financial policies that maintain financial sustainability and efficient financial planning, have positively impacted its credit ratings.
He stressed the government's commitment to fostering economic growth through transformational spending, while ensuring financial sustainability in the medium and long term.
He highlighted efforts to increase the private sector's role in the economy, enabling it to become the primary driver of economic growth by creating a conducive investment environment and supporting small and medium enterprises.
This strategy aims to build a strong and promising business sector that boosts the capabilities of human resources in various projects, and enables the government to remain focused on promoting economic growth to ensure financial sustainability and the continuation of projects with economic and social benefits.
Moreover, efforts will continue in developing infrastructure and improving the quality of essential services for citizens, residents, and visitors.
The Crown Prince emphasized that the 2025 budget reaffirms the Kingdom's commitment to continuing regulatory and structural reforms and developing policies aimed at enhancing the standard of living, empowering the private sector, and improving the business environment. This includes preparing an annual borrowing plan in line with the medium-term debt strategy, which aims to maintain debt sustainability, diversify local and foreign financing sources, and access global debt markets.
He highlighted the Kingdom's pivotal role in supporting regional and global economic and financial stability, leveraging its robust economy to overcome challenges.
Acknowledging the fact that the Saudi economy is an integral part of the global economy, the Crown Prince said that it is subject to global developments, like any other economy, and this necessitates continuous efforts to address global challenges, through long-term financial planning.
He added that the focus remains on achieving and implementing programs and initiatives while committing to efficient spending, and ensuring the meticulous and transparent execution of all budget items, and on completing the programs and projects outlined in Vision 2030, and the national and sectoral strategies.
The Crown Prince stressed the Kingdom's clear approach and highlighted that the government's primary goal, under the leadership of the Custodian of the Two Holy Mosques, is to serve citizens and residents, safeguard the development achieved so far, and continue humanitarian endeavors, both domestically and internationally, in line with the teachings of true Islam.
