Government Budget

The Ministry of Finance is working on fostering financial transparency and cementing the community participation by presenting the Saudi Annual Budget Statement as well as submitting quarterly reports and reports aimed at citizens that highlight the most important financial data and economic updates. This approach allows the community and different institutions to have access to the details of the State financial performance and understand the economic policies more clearly. The Ministry further copes with the technical developments by providing electronic platforms that give easy access to the government performance indicators with the possibility of reviewing the budget details of each ministry at their official websites. These efforts reflect the Saudi Arabia’s keenness on achieving the highest standards of transparency, fostering trust between the Government and the community and supporting citizens’ participation in the economic development process.

The Saudi Budget

Saudi annual Budget represents a pivotal step in the process of economic and financial reforms led by Saudi Arabia Government under the umbrella of the Saudi Vision of 2030. The Ministry of Finance takes over the preparation of the Budget according to a methodology that starts with the preparation stage then approval and implementation leveraging the automation programs that enhance the performance efficiency.

The Budget includes an overview of its financial objectives for the present year as well as the performance reports that illustrate the expenditure indicators through different sectors. It further highlights the most prominent projects that constitute a qualitative transformation point contributing to achieving sustainable development and reinforce the Saudi Arabia’s position on the regional and international level.

Every fiscal year, Saudi Arabia announces the features of its Budget highlighting the most prominent financial and economic indicators including revenues and expenditures expectations and the GDP. The Budget announcement reflects the State’s priority to manage deficit or achieve surplus and the Ministry of Finance’s commitment to lay out financial policies that are transparent and conform to the international standards.  

The Budget shows a strategic vision that aims at enhancing the growth of the national economy by increasing the GDP’s contribution, reducing dependency on oil as a main source of income, keeping up with the global economic changes and foreseeing the future challenges.

Saudi Arabia’s Revenues

Saudi Arabia revenues depend on a set of diverse resources that form the main pillar for its national economy. Oil and gas revenues come in the forefront of those resources based on the Saudi Arabia’s energy wealth. Moreover, non-oil revenues make increasing contributions including zakat and tax yields, diverse fees and revenues generated by the strategic investment.

The Public Investment Fund manages those investments effectively through an integrated project portfolio that aims at diversifying sources of income, reinforcing the national economy, reducing dependency on oil in align with the Saudi Vision of 2023. Such efforts contribute to building a strong and sustainable economy that fosters the Saudi Arabia’s position in the global markets.

Preparation for the Budget

• The stage of preparation for the Budget starts by end of December for the previous fiscal year and lasts until the beginning of January.
• In the beginning of February, the main priorities of the Budget are laid out based on the strategic objectives.

Preliminary Review and Analysis

• As of mid-March until the end of April, the Budget is subject to the initial review and the detailed analysis of the influencing factors.

Discussion and Review

• As of May until the end of August, the specifics of the Budget are discussed and evaluated to ensure its alignment with the national plans.

Compliance with laws and standards

• The Budget is prepared according to a set of applicable laws with a commitment to the annual cycle and the expected estimates of revenues and expenses.
• Revenues should be compatible with expenses taking into account rescheduling the changes and analyzing their impacts.

Limits of expenditure

• Limits of expenditure should be defined carefully including the provision of a standard budget that include all the revenues and expenses in a unified budget.

Required efficiencies

• Preparation of the budget requires higher economic and financial efficiencies along with advanced knowledge and technical skills.
• It is also required to have strategic leaderships and strategic thinkers with deep understanding of policies and legislations in addition to higher financial analytical skills to ensure success in the efficient implementation of the Budget.

The journey of approving the Budget:

Preliminary Analysis

• It is conducted in July, August and September where all financial data related to revenues and expenses are analyzed.

Final Approval

• This stage extends from October to November where all the financial adjustments and priorities are reviewed and confirmed.

Final Launch

• In December, after completion of all the stages of review and approval, the Budget is released officially to be implemented in the new fiscal year.

The automation programs in the preparation and implementation of the Budget:

(Etimad) Digital Platform

• “Etimad” Platform contributes to the preparation and efficient implementation of the Budget expenditure models

Budget Support Systems

• The platform includes an integrated system for the preparation and implementation of the Budget in addition to a business intelligence system that enhances the ability to take decisions based on accurate data.

Data Governance

• The Platform guarantees the application of data governance standards to ensure the accuracy and integrity of information in all the stages of preparation and implementation.

Management Reinforcement Program

• The Program enhances the management of financial operations by providing tools that contribute to improving planning and implementation.

Communication with Government Agencies

• Communication with the government agencies is conducted through introductory workshops, the budget forum, budget-related media plans and launching the refreshing roles of the supporting agencies.

Increasing Transparency and Expenditure Efficiency

• “Etimad” plays a crucial role in enhancing transparency and expenditure efficiency which contributes to improving the financial performance of the government agencies.

Beneficiaries of the Platform

• The platform encompasses a number of users such as the government agencies, supervisory bodies, contractors, vendors and traders which contributes to the improvement of coordination and efficient implementation of projects.

Expenditure in the Saudi Arabia

Expenditure in the Saudi Arabia is directed into supporting a lot of vital domains. Revenues are allocated for the operating expenses such as workers compensation, incentivizing the private sector and funding the programs aimed at achieving the Saudi Vision of 2030 as well as the social benefits that enhances the citizen welfare. Expenditure also includes the capital expenses directed to the comprehensive development and improvement aiming at reinforcing infrastructure and driving the economy towards sustainable growth.

Saudi Budget is linked to the achievement of the objectives of the Vision of 2030 and the Ministry of Finance is committed to declare it pursues transparency in the preparation of the Budget to ensure sustainability and achievement of the future aspirations. The Budget is subject to a legislative and regulatory audit and complies with the law. The Basic Law of Governance and Saudi Budget require all the Government agencies to apply the principles of Budget Governance which are:

• Transparency, credibility and foreseeability of the financial policy
• Alignment with the Saudi Vision of 2030 and any other national strategy or priority.
• Comprehensive and participatory discussion concerning Budget Planning.
• Open data and documents with transparency and accessibility.
• Comprehensive, accurate and credible calculation of the public funds.
• Effective planning for the implementation, management and monitoring of the Budget.
• Performance, assessment and money value are essential parts of the Budget Process.
• Outlining, evaluating and carefully managing the long-term sustainability and the other financial risks.

To ensure the transparency of the government spending, each government agency should submit annual and quarterly reports to the Ministry of Finance and then the MOF is committed to issue annual and quarterly performance reports on the implementation of the Budget along with the final annual account summaries to be included in the detailed annual reports of expenditures and revenues. Etimad Platform also plays a crucial role in elevating the level of transparency and expenditure efficiency to its users such as the government and supervisory agencies, contractors, vendors, traders and others. All government agencies are required to use the Platform to purchase goods and services and for payment transactions. Further, the Expenditure and Project Efficiency Authority (EXPRO) was established to contribute to achieving expenditure efficiency in the government agencies, upgrading the quality of projects and assets, planning infrastructure and following up the implementation of the government initiatives and programs by the agencies.

The Cabinet has approved in its session chaired by H.H the Custodian of the two Holy Mosques King Salman Bin Abdulaziz – may God saves Him-Saudi Budget for the new FY 1446/1447H (2025 AD) with total expenditures of 1.258 billion Riyal and total revenues of 1.184 billion Riyal. Saudi Budget for the FY 2025 confirms Saudi Arabia’s ongoing efforts to continue its structural reforms on the financial and economic level in light of the Saudi Vision of 2023 aiming at achieving long-term financial sustainability which reinforces the Saudi Arabia’s economy in the face of the global challenges and updates.  

The Saudi Arabia continues to support diversifying the economic base by launching many programs and initiatives to harness all the available resources and maximize the available opportunities to develop different sectors. Four special economic zones were lunched depending on the competitive advantages of each zone to support the local economy and SMEs all over the Saudi Arabia and to enhance innovation. The economic potential supporting the growth of the private sector plays a crucial role in developing the Saudi Arabia’s economy on the medium and long term as the Saudi Arabia aims at achieving the objectives of the Saudi Vision of 2030 through a set of investment arms including the Public Investment Fund that is considered one of the main factors of economy and investment in the Saudi Arabia, developing mega projects and launching new sectors that contribute to achieving economic diversity.

This is in addition to its ambitious journey in the economic transformation in line with the 2030 Vision which is a pivotal stage that witnesses radical transformations on the level of the economic and financial reforms. The Saudi Budget of 2025 reflects the Saudi Arabia’s ongoing approach in enhancing transparency and financial disclosure that aims at developing the preparation and implementation of the Budget with utmost efficiency maintaining the financial sustainability and balance between the developmental expenditure and the requirements of maintaining a stable macroeconomy.

Furthermore, we notice that Saudi Arabia’s economy is going through a substantial transformation phase based on a comprehensive series of economic and financial improvements aiming at achieving the Saudi Vision of 2030. On that basis, the Saudi Arabia is moving towards increasing the strategic expenditure on different sectors and zones and accelerating the implementation of projects to diversify the economy and make it more sustainable as well as to increase yields and economic, social and environmental benefits. There is also focus on improving the quality of services provided to the citizens and enabling them through social services along with maintaining financial sustainability on the medium and long term. 

The State also follows strategies to foster financial sustainability by improving the non-oil revenues and controlling expenditures. The Report shows that there are persistent efforts to increase efficiency of public expenditure and improve financial management which contributes to achieving the objectives of financial sustainability on the medium and long term. Maintaining balanced levels of public debt is considered an essential part of this strategy as it helps provide financial resilience in the face of economic shocks.

It is expected that the total revenues in 2025 will reach almost 1.184 billion Riyal and increase to 1,289 billion Riyal in 2027. There are reservations to these expectations as a result of the approach adopted by the Saudi Arabia in outlining Budget estimates in anticipation of any changes that may accidently occur in the global and local economy. Accordingly, it is estimated that the total expenditure of 2025 will reach 1,285 billion Riyal and an amount of 1,429 billion Riyal in 2027. The updated estimates of 2024 Budget indicate that a budget deficit was recorded at an amount of 115 billion Riyal which is equivalent to 2.8% of the GDP. It is further estimated that the 2025 Budget deficit will reach 101 billion Riyal which is equivalent to 2.3% of the GDP with expectations of continuous budget deficit to be recorded at almost similar levels on the medium term as a result of the Government’s adoption of the expansionary spending policy geared towards economic growth.

The Initial expectations of 2025 show that 4.6% growth in the GDP will be achieved supported by an increase of the GDP from the non-oil activities. This growth comes as a result of the economic reforms and efforts exerted to accelerate economic diversity to enhance sustainable economic growth. Moreover, the programs and initiatives that enable and incentivize the private sector contribute to making it the main factor for economic growth and creating new and sustainable job opportunities in the Job market. Effective implementation of the programs and projects of the Saudi Vision of 2030 continues to be the main tool for achieving the objectives of economic transformation.

Saudi Budget of 2025 reflects an ambitious vision that focuses on supporting the main sectors that contribute to achieving sustainable development and fostering the citizen’s quality of living. The massive financial appropriations for these sectors embody the State’s priorities for the development of infrastructure and supporting the vital projects which highlight the Saudi Arabia’s commitment to satisfying the present needs and building a prosperous future.

Sector Objectives in the 2025 Budget

- To review the objectives in detail, please click here

Education Sector:

The Budget appropriated an amount of 201 billion Riyal to support a wide range of programs and initiatives including establishing schools, colleges and dormitories, the Custodian of the two Holy Mosques Scholarship Programs as well as supporting researches, development, innovation, establishing university hospitals and enhancing knowledge sources.

Healthcare and Social Development Sector:

260 billion Riyal was appropriated with a focus on enhancing health, emergency response, legislative and research services and also social security and social welfare, cultural, media, sports, and recreational programs including the management of the quality of living program.

General Items Sector:

216 billion Riyal was allocated for this sector that covers expenses such as the Government’s contributions to the retirement pensions, social insurance, public debt cost, budget stabilization provisions, and international organizational contributions. It also supports government facilities and emergency subsidies.

Infrastructure and Transportation Sector:

This sector has been allocated SAR 42 billion to fund road, port, railway, and airport infrastructure developments, along with housing, telecommunications, information technology, postal services, aerospace, and industrial cities.

Municipal Services Sector:

Budgeted at SAR 65 billion, this sector’s funding is for urban infrastructure development, development of Saudi cities, recreational activities, festivals, and public quality of living enhancement.

Economic Resources Sector:

With SAR 87 billion allocated, this sector supports environmental infrastructure, water management, agriculture, desalinated water production, sewage systems, energy, and mineral resources, as well as tourism, investment development, industrial expansion, export support, small and medium enterprise development, and local content enhancement an financial and economic planning.

Public Administration Sector:

An allocation of SAR 44 billion supports administrative and legislative services, civil service, courts, Islamic affairs, human rights, and the care of the Holy Mosques.

Military Sector:

This sector receives SAR 272 billion for the localization of military industries, support for military capabilities and provision of medical services through the military hospitals, supporting military research, education and training in the military academies and universities, and the operation and maintenance of military facilities, bases and cities.

Security and Regional Administration Sector:

With SAR 121 billion, this sector strengthens security measures, critical infrastructure protection, crime and drug combat initiatives, civil protection, and traffic safety, and supports the enhancement of cybersecurity and technical integration of civil status transactions.

Sectoral Expenditure

The Saudi economy continues to achieve positive performance driven by structural initiatives and reports that aim at diversifying economy and enhancing the role of the private sector in line with the objectives of the Saudi Vision of 2030. In light of the local developments, growth is projected to continue during 2025 and on the medium term led by non-oil sectors.

Economic growth prospects of 2025

• The real GDP: estimates indicate a growth percentage between 4.4 to 4.6% in 2025 supported by non-oil activities.
• Private sector contribution: the Saudi Arabia seeks to increase the private sector’s contribution to the GDP to 65% by 2023 compared to 41% in 2022.

Growth enhancement strategies:

• Saudi Vision Programs of 2030: the Vision’s programs and projects continue to be implemented as a primary tool for achieving economic transformation with focusing on diversifying sources of income and creating sustainable job opportunities.
• Incentivizing investment: efforts are exerted to enhance the investment environment and removing obstacles faced by investors under the umbrella of the National Investment Strategy aiming at increasing the contribution of the direct foreign investment to 5.7% of the GDP by 2030.
• Partnership with the private sector: through programs like “Shareek” and “Privatization”, cooperation between public and private sector is enhanced and local investments will increase to an amount of 5 trillion Riyal by 2030.

Future prospects

With the continuous efforts, it is expected that the Saudi economy will witness sustainable growth with an increase in the non-oil sectors contributions which enhances economic stability and achieves sustainable development for Saudi Arabia.

Development Funds in Saudi Arabia play a pivotal role in the achievement of the economic transformation and sustainable development in line with the objectives of the Saudi Vision of 2030.

National Development Fund

The National Development Fund contributes to diversifying the national economy by transforming it to a comprehensive development financing authority. The fund aims at bolstering the Saudi Arabia’s real GDP by pumping more than 570 billion Riyal by 2030 and increasing the non-oil GDP contribution to more than triple to reach an amount of 605 billion Riyal by the end of 2030.

Public Investment Fund

The Public Investment Fund is considered an essential pillar in the achievement of the Saudi Arabia’s economic transformation as it focuses on diversifying economy, empowering the private sector and developing the promising sectors. The Fund is committed to pump an annual average of 150 billion Riyal into the local economy and activating mega projects such as the Red Sea Project, the first phase of which was announced along with welcoming visitors from all over the world. It is expected that the number of visitors will reach 450 thousand visitors by the end of next year, which reflects the efforts exerted in the development of the tourism sector.

Saudi Seasons

The Saudi seasons contribute to activating tourism-related activities and increasing the number of tourists which positively affects the Private Sector’s consumption and help improve the quality of living for citizens and residents.

Oil Sector

Oil Production witnessed a decline since the beginning of 2023 and until the end of the third quarter at 6.9% as a result of the voluntary reduction of crude oil production with an amount of 500 barrels/day as of May and until the end of 2024 as well as the voluntary additional reduction with an amount of million barrels/day as of July 2023 until the end of December 2023 in order to support the stability and balance of the oil markets.

Through these comprehensive efforts, the Saudi Arabia shows its commitment to the achievement of sustainable development and diversification of its economy along with maintaining the stability of global markets and bolstering the Citizen’s quality of life.

Saudi Arabia confirms its firm commitment to contribute to the achievement of the SDGs adopted by the UN through its annual Budget and the sustainable strategic planning. This commitment is manifested in the mega investment directed by the Saudi Arabia towards the development of sustainable infrastructure, enhancing education and health sectors and supporting clean energy projects. Those initiatives are considered main pillars in the course of achieving sustainable development in line with the Saudi Arabia’s ambitious Vision for the future. Huge amounts were allocated to the education and health sectors in Saudi Budget of 2025 which reflects the Saudi Arabia’s commitment to the achievement of SDGs.

Health

An amount of 260 billion Riyal was allocated for the health and social development sector which confirms the Saudi Arabia’s commitment to enhance the health care quality and providing health services to all citizens. This aligns with (SDG3) that focuses on securing healthcare and enhancing welfare for all at all age groups.

Education (SDG 4)

The Saudi Arabia confirms the importance of good education as a pillar for sustainable development by allocating 201 billion Riyal for the education sector. This aligns with the SDG 4 that seeks to secure good education and equal education opportunities for all.

Through a set of ambitious projects, Saudi Arabia seeks to achieve SDGs outlined by the UN and as follows are the some of the key projects:

NEOM Project

One of the most ambitious projects in Saudi Arabia that aims to building a sustainable city that depends on renewable energy which supports the goals of clean energy and sustainable cities.

Red Sea Project

This project focuses on developing eco-tourism and sustainability, demonstrating Saudi Arabia's commitment to protecting marine environments and promoting a green economy in align with the environmental SDGs.

Sakani Program

Aimed at providing affordable housing to citizens, this program supports SDG 11, which pertains to sustainable cities and communities.

Solar and Wind Energy Project

Through these initiatives, Saudi Arabia seeks to enhance the use of renewable energy and reduce dependence on fossil fuels, supporting SDG 7 for affordable and clean energy.

Financial Sector Development Program

This program aims to improve financial inclusion and support sustainable economic growth, aligning with SDG 8.

Middle East Green Initiative

It aims at planting millions of trees in the Saudi Arabia and the region to combat climate change and to preserve the environment and it directly supports the SDG no.13 pertaining to climate action.

Saudi Green Initiative

Saudi Green Initiative plays a crucial role in the achievement of the global climate goals. The Saudi Arabia paves the way into a more sustainable future by following an investment approach that integrate all the society groups.

Future Investment Initiative

it focuses on attracting investments in sustainable sectors and bolstering innovation and entrepreneurship which contribute to the achievement of the SDG no.9 pertaining to industry, innovation and infrastructure.

Through these projects and initiatives, the Saudi Arabia confirms its commitment to the achievement of sustainable development and fostering the quality of living of its citizens along with the active participation in the international efforts to achieve the SDGs.

- To explore more about these projects, please click here

These projects and initiatives clearly demonstrate how Saudi Arabia integrates its international commitments with its national aspirations, directing its efforts toward achieving comprehensive sustainable development. Through these efforts, Saudi Arabia demonstrates its leadership and responsibility towards global issues such as climate change, environmental sustainability, and the social and economic well-being of its people and the world.

Those efforts highlight the Saudi Arabia’s position as a leading country in sustainable development and innovation. Its investment in the green infrastructure, renewable energy, clean technologies bolsters its stature as an example to be followed on the global level. Focusing on financial inclusion, supporting innovation and fostering entrepreneurship reflects the Saudi Arabia’s Vision towards a diversified and sustainable economy based on innovation and development.

To maximize the impact of these efforts, the Saudi Arabia is committed to incentivize the Private Sector and civil society’s contribution to the development initiatives highlighting the importance of the joint action and strategic partnership for the achievement of the SDGs. By way of these collective endeavors, the Saudi Arabia will cement the values of cooperation and integration to achieve comprehensive and sustainable development.

In light of the Saudi Budget and the Budget-related ambitious Projects, the Saudi Arabia’s unwavering commitment is manifested in the face of the global challenges and in the future investment. Through the expansionary spending on vital sectors like education and health and enhancing infrastructure and public services, the Saudi Arabia lays a strong foundation to secure better life for all citizens and residents.

In addition, calculated structural reforms and economic policies represent an active tool for overcoming the challenges and harnessing the global economic opportunities which reflects the Saudi Arabia’s long-range vision and its effective financial approach.

Under the umbrella of the 2030 Vision, the Saudi Arabia continues its pursuit with steadiness towards a diversified and sustainable economy depending on balancing between the economic growth, innovation and social responsibility. With this approach, the Saudi Arabia is heading towards a brighter future that combines economic development, environment sustainability and the achievement of a comprehensive development for everyone on its land.

- To review the Budget Statement FY 2025, Please click here

Clean Energy and Economic Work

Saudi Arabia gives due attention to the achievement of the SDGs by focusing on many key aspects:

Clean Energy

In the context of the Saudi Vision of 2030, the Saudi Arabia seeks to diversify energy resources and to reduce dependency on oil and it has launched ambitious projects in the field of renewable energy including research, development and manufacturing activities.

Sustainable Economic Growth

The Saudi Arabia works on bolstering the knowledge economy and infrastructure investment which contributes to the achievement of sustainable economic growth and creating proper job opportunities. Recently, an increase was witnessed in the number of new factories and industrial licenses which is positively reflected on the growth of non-oil merchandise exports.

International Partnerships

The Saudi Arabia seeks to bolster its role in the international arena through strategic partnerships and contributing to the global endeavors for the achievement of sustainable development. Initiatives like “Green Middle East” was launched to combat climate change and enhance environmental sustainability in the region.

Through these comprehensive efforts, the Saudi Arabia confirms its commitment to the achievement of the SDGs and fostering the welfare of its citizens and the international community.

This section provides detailed data on revenues and expenditure transactions during the specific quarter. Additionally, these reports address the realized surplus or deficit, the financing criteria involved, the public debt, as well as the balances of the general reserve and the current account. The Ministry of Finance publishes these reports periodically as part of its commitment to enhance transparency regarding the performance of public finances. 

To explore the periodic reports, please click here

The Saudi Budget Performance Reports are available on the following links: