Saudi Arabia’s oil revenues continue to play a crucial role in its economy, generating SAR149.810 billion ($39.94 billion) in the first quarter of 2025. This revenue, however, reflects an 18 percent decline compared to the previous year, as the Kingdom navigates the challenges posed by fluctuating oil prices and strategic production cuts.
Despite these hurdles, the government’s commitment to its Vision 2030 initiative remains steadfast, focusing on transformative projects aimed at reducing dependence on oil.
While the Kingdom’s total revenues saw a 10 percent decrease to SAR263.616 billion ($70.3 billion), public spending increased by 5 percent to SAR322.317 ($85.9 billion) during the same period, according to a statement from the Finance Ministry.
The ministry also reported a widening deficit of SAR15.65 billion, up from SAR3.30 billion a year earlier. This shift underlines the balancing act the government faces as it invests in long-term growth while managing the immediate impacts of declining oil revenues.
Read more: Saudi budget records a $27.68 billion surplus in 2022
Positive signs in non-oil sector
In a positive development, non-oil revenues rose by 2 percent to SAR113.806 billion ($30.3 billion), highlighting the country’s efforts to diversify its economy.
Saudi Arabia, as part of OPEC+, is also adjusting its oil production strategy, agreeing to increase output in May to align with global market demands.
As Saudi forges ahead with its ambitious plans, it has forecast a budget deficit of SAR101 billion for 2025.
Public debt reached SAR1.329 trillion, yet the country maintains a low debt-to-GDP ratio, reflecting strong confidence from lenders.
By allocating substantial funds to large-scale development projects, Saudi Arabia aims to enhance growth in tourism and the private sector, further solidifying its economic transformation trajectory.
