2025 budget maintains expansionary approach: Al-Jadaan

Finance Minister Mohammed Al-Jadaan

Saudi Finance Minister Mohammed Al-Jadaan said the 2025 budget reflects the government’s expansionary approach to enhance, expand, and improve citizen services.

Speaking at the 2025 fiscal budget announcement, he highlighted the focus on impactful strategies driving job creation, business opportunities, and economic sustainability while advancing ongoing projects.

Non-oil revenues have grown 154% since 2016, reaching SAR 472 billion by 2024, demonstrating reduced dependence on oil market fluctuations.

He noted stable budget spending, supported by robust non-oil revenues, with oil contributing 28% to Gross domestic product (GDP) and private sector investment accounting for 24%.

Private sector investment's GDP share rose 52.5% since 2016 to 24.7%, signaling a major structural shift in the economy.

Saudi private sector employment rose 23.4% since 2016, Al-Jadaan added.

He noted tourism is now the top contributor to the balance of payments after oil, driving job creation.

He outlined Saudi oil revenues from three sources: 15% royalties on Aramco’s sales transferred monthly, 50% of its profits paid as quarterly taxes, and dividends from the government’s ownership stake.

The minister stated that major projects, including NEOM, the Red Sea, Qiddiya, and Diriyah Gate, are funded by PIF and its subsidiaries, not public finances.

He affirmed that all public finance-linked strategies and projects through 2030 are sustainably funded, ensuring no impact on the state’s fiscal position.

NEOM, he clarified, is a 50-year-plus project, not limited to one or five years. He added that some projects, like Diriyah Gate and the Red Sea, are already operational with high quality and cost efficiency, despite an undue focus on certain initiatives over others.