According to consulting firm McKinsey & Co, Saudi Arabia is projected to significantly increase its expenditure on industrial and major projects. The expected growth indicates a potential doubling of spending. It is projected to reach over $175 billion annually. This amount is more than three times the current level.
Saudi is anticipated to increase its annual project spending by $180 billion in 2026 and 2027. This is in addition to ongoing projects like NEOM and Red Sea resorts, which have a combined value of $1.3 trillion,
Read more: Saudi to increase expenditure to SAR1,262 bn this year
Saudi Crown Prince Mohammed bin Salman affirmed that the Saudi non-oil economy is poised to become one of the fastest-growing economies among the Group of 20 nations this year. The statement was made during a recent interview with Fox News.
The Crown Prince further mentioned that the Saudi economy holds the 17th global position. He also noted the potential for it to rejoin the list of the top 7 economies.
The Saudi Crown Prince disclosed that new, more ambitious targets have been established for Vision 2030. He stated that some of the forthcoming initiatives are already in progress and are expected to be concluded by the first half of 2024. Following that, efforts will be directed towards the execution and preparation for Vision 2040, with the announcement of its milestones projected for 2027 or 2028. This serves as the primary area of concentration for the leadership.
Revised budget
On October 2, Saudi revised its budget estimates for 2023. The planned expenditure has been increased to SAR1,262 billion ($336.49 billion). This is higher than the previously announced SAR1,114 billion ($297 billion). While total revenues are expected to surpass earlier estimates, the budget now projects a SAR82 billion deficit for 2023. This is in contrast to the earlier surplus of SAR16 billion. The deficit is primarily attributed to increased spending.
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