Saudi Arabia’s Ministry of Finance has released its latest financial report, showing steady growth in non-oil revenues alongside a third-quarter budget deficit of SR30 billion. In the first nine months of 2024, non-oil revenues increased by 6% and as oil revenues grew 16% year-over-year, reflecting the Kingdom’s push to diversify its economy beyond oil.
Key Highlights of Q3 Financial Report
Saudi Arabia’s total spending in the third quarter reached SR339 billion, exceeding revenues of SR309 billion. Of these revenues, SR191 billion came from oil, with non-oil sectors contributing SR118 billion. Despite efforts to boost non-oil income, the Kingdom recorded a cumulative deficit of SR58 billion for the first nine months, with revenues at SR956 billion and expenditures over SR1 trillion. Public debt rose to around SR1.158 trillion by the end of September.
In the first half of the year, Saudi Arabia collected SR647 billion in revenues and spent SR674 billion, resulting in a deficit of SR28 billion. During this period, oil revenues reached SR395 billion, up 10% from the previous year, while non-oil revenues were at SR252 billion, marking a 6% rise.
Growth Prospects and Economic Projections
Saudi Arabia’s economy is expected to grow by 4.4% in 2024, with further expansion of 5.7% anticipated for 2025 and 5.1% for 2026. The Ministry of Finance projects a slight decrease in inflation, with rates expected to decline from 2.6% in 2023 to 2.2% in 2024, falling below 2% by 2026.
In 2025, Saudi Arabia plans to spend SR1,285 billion, with projected revenues of SR1,184 billion, resulting in a forecasted deficit of 2.3% of GDP. Real GDP is expected to grow by 0.8% in 2024 and a more robust 4.6% in 2025, driven by continued investment in oil and non-oil sectors.
Saudi Arabia is progressing steadily in economic diversification, yet managing spending and public debt remains critical. As the Kingdom of Saudi Arabia pursues Vision 2030, balancing ambitious projects with careful financial management will be essential to achieving long-term stability and resilience in the global economy.