In a big monetary improvement for Saudi Arabia, non-oil revenues within the second quarter of 2025 rose sharply by 7 p.c, reaching SR149.861 billion ($39.9 billion). This improve, up from SR140.602 billion ($39.5 billion) in Q2 2024, displays the continued momentum within the Kingdom’s financial diversification technique underneath Imaginative and prescient 2030. For the primary time, non-oil revenues contributed to 49.7 p.c of complete quarterly revenue, practically half, underlining the rising energy of different income sources.
Income and Spending Snapshot: Q2 2025
In line with the Ministry of Finance, complete revenues for Q2 2025 amounted to SR301.595 billion ($80.4 billion), whereas expenditures totaled SR336.129 billion ($89.6 billion). This resulted in a price range deficit of SR34.534 billion ($9.2 billion) for the quarter. Whereas oil revenues fell 29 p.c year-on-year, dropping to SR151.7 billion ($40.4 billion), the hole was partially offset by robust performances in key non-oil classes:
- Revenue and revenue taxes: SR13.729 billion ($3.7 billion)
- Taxes on items and providers: SR74.950 billion ($19.9 billion)
- Commerce-related taxes: SR6.323 billion ($1.7 billion)
- Different taxes and miscellaneous revenue: Registered average development
Authorities spending fell by 9 p.c in comparison with Q2 2024, declining from SR368.932 billion ($98.4 billion) to SR336.129 billion ($89.6 billion), a mirrored image of tighter fiscal controls.
First Half 2025: Broader Financial Context
Within the first half of 2025, complete income reached SR565.210 billion ($150.7 billion), in opposition to expenditures of SR658.446 billion ($175.5 billion), resulting in a cumulative deficit of SR93.236 billion ($24.8 billion). Of this, non-oil revenues totaled SR263.667 billion ($70.3 billion), whereas oil revenues stood at SR301.543 billion ($80.4 billion). Spending throughout this era was 2 p.c decrease than in H1 2024, when it reached SR674.753 billion ($179.8 billion), indicating constant efforts to rationalize expenditure. On the identical time, On the fiscal facet:public debt climbed to SR1.39 trillion ($370.7 billion), damaged down into:
- public debt climbed to SR1.39 trillion ($370.7 billion), damaged down into:
- SR871.3 billion ($232.2 billion) in home debt and
- SR515.136 billion ($137.4 billion) in overseas debt.
- The state reserve elevated to SR396.954 billion ($105.7 billion), and
- the present account steadiness stood at SR102.587 billion ($27.3 billion).
Non-Oil Sector Beneficial properties: Tangible Progress Beneath Imaginative and prescient 2030
Saudi Arabia’s fiscal and financial transformation underneath Imaginative and prescient 2030 is producing measurable outcomes, aimed toward lowering reliance on oil and constructing long-term resilience. Key reforms embody:
- Income mobilization and power worth changes
- Expenditure controls and the
Treasury Single Account (TSA) for centralized finance - Enhanced fiscal threat assessments, price range transparency, and debt administration frameworks
These measures are a part of the Nationwide Transformation Program and Fiscal Steadiness Program, which give attention to non-oil sector development, seen as extra secure and job-rich in comparison with the oil sector’s volatility.A central driver of this shift is the transformation of the Public Funding Fund (PIF). As soon as a home holding entity, the PIF now operates as a world sovereign wealth fund, directing capital into sectors aligned with future financial traits. Its portfolio spans AI analysis and improvement, international startups, large tech, Autonomous/ Self driving know-how in partnerships with main electrical car manufacturing corporations akin to Lucid Motors, alongside stakes in companies like Fb, Starbucks, Disney, Boeing, Citigroup, Stay Nation, Marriott, Carnival Cruise Strains, Reliance Retail Ventures, and the Oryx Fund amongst many others. This international funding technique enhances home objectives: growing the non-oil GDP share, diversifying exports, and increasing personal sector roles, all crucial for future-proofing the financial system and producing employment for Saudi Arabia’s rising youth inhabitants.
