Daijiworld Media Network- Riyadh
Riyadh, Aug 1: In a notable fiscal shift, Saudi Arabia’s non-oil revenues rose by 7% in the second quarter of 2025, reaching SR149.861 billion ($39.9 billion), compared to SR140.602 billion ($39.5 billion) in the same period last year. According to the Ministry of Finance, non-oil revenues now constitute 49.7% of the Kingdom’s total quarterly income – the highest share to date.
Total revenues for Q2 2025 stood at SR301.595 billion ($80.4 billion), while government spending amounted to SR336.129 billion ($89.6 billion), resulting in a fiscal deficit of SR34.534 billion ($9.2 billion) for the quarter.
Oil revenues, meanwhile, declined by 29% year-on-year, falling to SR151.7 billion ($40.4 billion). The impact of this drop was mitigated by robust collections in non-oil categories, including SR74.950 billion ($19.9 billion) from goods and services taxes, SR13.729 billion ($3.7 billion) from income and profit taxes, and SR6.323 billion ($1.7 billion) from trade-related taxes.
Expenditures in Q2 2025 were down by 9% compared to Q2 2024, falling from SR368.932 billion ($98.4 billion), a result of continued efforts toward fiscal discipline.
In the first half of 2025, total revenue reached SR565.210 billion ($150.7 billion), while total expenditures stood at SR658.446 billion ($175.5 billion), leading to a cumulative budget deficit of SR93.236 billion ($24.8 billion). Non-oil revenues during this period totaled SR263.667 billion ($70.3 billion), while oil revenues were at SR301.543 billion ($80.4 billion).
Government spending for H1 2025 saw a 2% decline from H1 2024 levels, which had touched SR674.753 billion ($179.8 billion).
Saudi Arabia’s public debt reached SR1.39 trillion ($370.7 billion), comprising SR871.3 billion ($232.2 billion) in domestic debt and SR515.136 billion ($137.4 billion) in foreign debt. The state reserve climbed to SR396.954 billion ($105.7 billion), while the current account balance was reported at SR102.587 billion ($27.3 billion).
The Kingdom’s Vision 2030 continues to drive economic reforms, with a focus on fiscal diversification and sustainability. Measures under the National Transformation Program and Fiscal Balance Program include adjustments in revenue collection, tighter expenditure controls, improved debt management, and enhanced budget transparency.
The Public Investment Fund (PIF), a central pillar of Vision 2030, has evolved into a global sovereign wealth entity. It has made significant international investments across sectors including artificial intelligence, autonomous vehicle technology, and major corporations such as Lucid Motors, Facebook, Disney, Boeing, Citigroup, and Reliance Retail Ventures.
These strategic initiatives aim to strengthen Saudi Arabia’s non-oil economy, boost exports, and create employment opportunities for its youth, in line with long-term national goals.