Saudi Arabia budget report 2025

On 26 November, the government approved the fiscal year (FY) 2025 budget statement as presented by the Ministry of Finance (MoF). In our annual KPMG budget report, we present our views, supported by internal analysis and other sources.

The MoF's Budget Statement for FY 2025 outlines key details of budgeted revenues and expenditures, major programs, and fiscal developments. This statement reflects the government’s ongoing commitment to fiscal transparency and disciplined financial management, in line with the Kingdom’s Vision 2030 objectives. The Saudi economy has demonstrated resilience in the face of global economic challenges.

Despite a shift to positive growth from last fiscal year, real GDP annual average growth remained weak in fiscal year 2024, expanding by an estimated 0.8 percent Year-on-Year (YoY), following a contraction of 0.8 percent YoY in fiscal year 2023. The decline in oil sector activities, driven by voluntary production cuts under the OPEC+ agreement, has been mitigated by significant growth in non-oil sectors, which continue to drive economic activity and employment. Inflation rates remain relatively low at 1.7 percent, reflecting successful fiscal policies and structural reforms.

Looking ahead, the 2025 budget anticipates real GDP growth of 4.6 percent, with non-oil activities as the primary driver, supported by private sector contributions, ongoing economic reforms, and improved business regulations. These efforts aim to attract investment, develop the labor market, and create sustainable job opportunities. Total revenues are expected to reach SAR1,184 billion, bolstered by growth in both oil and non-oil sectors, while expenditures are projected at SAR1,285 billion, reflecting increased spending on transformational initiatives, infrastructure development, and quality-of-life improvements.

The 2025 budget aligns with the government’s strategy to balance fiscal sustainability with economic and social objectives. While a budget deficit of SAR101 billion (2.3 percent of GDP) is projected, the government will maintain public debt levels within sustainable limits and leverage domestic and external borrowing to finance transformative projects. Public debt is expected to reach SAR1,300 billion (29.9 percent of GDP).

As the Kingdom continues to advance Vision 2030, this budget reaffirms its commitment to strategic investments that foster economic diversification, enhance social support systems, and sustain fiscal health. With these measures, Saudi Arabia is well-positioned to navigate global uncertainties and secure long-term economic growth and stability.

We hope you find this publication insightful for your organization, and we are available to discuss our findings in greater detail.