Saudi Arabia Grapples with Rising Deficit Amid Oil Revenue Decline
Saudi Arabia's deficit expanded to $15.65 billion in Q1 2025 due to a decrease in oil revenues, despite a rise in non-oil revenues. The government's Vision 2030 plan aims to reduce oil dependency and boost economic growth, necessitating significant investments and increased public spending.
Saudi Arabia's budget deficit has surged to $15.65 billion in the first quarter of 2025, driven by a significant drop in oil revenues, according to the finance ministry's report on Monday.
The world's largest oil exporter witnessed a 10% decrease in total revenues, reaching 263.616 billion riyals, while public spending increased by 5%. Factors such as falling oil prices and deliberate production cuts have strained the kingdom's finances, as it continues with strategic investments tied to its Vision 2030 initiative.
Despite a 2% rise in non-oil revenues, the kingdom faces a projected budget deficit of 101 billion riyals in 2025. As part of efforts to transition its economy, Saudi Arabia remains committed to funding large development projects, foster private sector growth, and attract tourism investments.
(With inputs from agencies.)
Google News