Saudi economy set to record positive growth rates in 2025: Al-Jadaan

Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan expects the country’s economy to record positive growth rates during 2025 and over the medium term, thanks to the continued implementation of reforms, strategies and projects under Vision 2030.

Thus, the Kingdom continues to diversify its economic base, strengthen the role of the private sector and grow promising sectors that drive more business opportunities and create jobs, he said following the release of the Kingdom's pre-budget statement for 2025.

The Minister reiterated the government’s continuous promotion of directed spending on essential services for citizens and residents, and the execution of strategic projects focused on enhancing economic growth and achieving sustainable development.

The government is adopting a long-term financial planning methodology to ensure focus on the stability of strategic transformational spending that aims to achieve economic gains and sustainable growth, he said. The public finances are resilient and able to overcome pressures in the medium and long term, Al-Jadaan added.

The Minister also highlighted the pivotal role of the Public Investment Fund (PIF), the National Development Fund and its affiliated development funds in supporting economic stability.

The positive outlook for the Saudi economy for 2025 is an extension of the positive developments in its actual performance in the past years. The pre-budget statement estimates growth in real GDP of 4.6%, which reflects the Kingdom's commitment to implement its ambitious strategies and achieve sustainable development. The initiatives will increase investors' trust and enhance the Saudi economy's position regionally and globally.

Despite the slowdown in global economic growth and ongoing economic challenges and geopolitical tensions, the Kingdom has demonstrated a robust financial position and resilient economy in the face of challenges, represented by safe levels of government reserves and acceptable levels of public debt, the Minister said. Additionally, the Kingdom’s flexible spending policy will help deal with crises that may arise in the future.

Al-Jadaan said the government is working to continue borrowing, according to the approved annual plan, to finance the expected budget deficit and repay the principal of the debt due in 2025. Moreover, the government is also capitalizing on market opportunities to implement financing activities, including alternative government financing.

He noted that the volume of the public debt portfolio is expected to increase in a deliberate manner to ensure the sustainability of debt as a result of the expansion in spending to accelerate the pace of implementing some programs and projects of Vision 2030.