Riyadh – Mubasher: Despite the rapid challenges experienced by the global economy during 2025, the economy of Saudi Arabia has continued to demonstrate its ability to adapt and remain resilient to external developments, according to a recent report by the Ministry of Finance.
The economic performance of the Kingdom reflects the strength of the local fundamentals related to economy in addition to the effectiveness of the policies and structural reforms implemented over the past years.
This progress is further backed by the sustained development spending directed toward strategic projects and promising sectors, all contributing to supporting economic growth, expanding private sector participation, and enhancing investment and employment opportunities over the medium and long-term.
In 2025, the actual fiscal performance recorded a decrease of around 6.1% in total revenues compared to the approved budget. This was mainly attributed to a decline in oil revenues.
On the other hand, non-oil revenues increased by approximately 5.3% compared to the approved budget estimates, driven by the government’s continued implementation of initiatives to enhance non-oil revenues, as well as sustained growth in non-oil activities.
Total Expenditure increased by approximately 8% compared to the approved budget. This reflects the notable progress in achieving the Saudi Vision 2030 objectives as well as the government’s ongoing efforts to support efforts toward directing spending on the development of public facilities and essential services.
This is besides the Kingdom’s efforts to enhance the expansion of economic diversification, advancement of structural reforms alongside the stimulation of economic growth and the implementation of several projects.
Furthermore, the government continued its support for social spending on targeted groups to mitigate the impact of economic changes, through periodic reviews of support programs and social subsidies, alongside improving the quality of public services and enhancing the quality of life.
Efforts also remained focused on empowering the private sector and developing a competitive and enabling business environment that attracts quality investment and supports sustainable growth objectives.
Economic Growth Objectives
The Saudi government continues to balance economic growth objectives with the preservation of fiscal sustainability. In line with its shift toward adopting targeted counter-cyclical fiscal policies, the budget recorded a deficit of approximately SAR 277 billion at the end of 2025 (5.8% of GDP) compared to an approved deficit of around SAR 101 billion (2.3% of GDP).
By the end of 2025, the public debt reached approximately SAR 1.519 trillion (31.8% of GDP) compared to about SAR 1.300 trillion in the approved budget (29.9% of GDP).
In addition, government reserves amounted to around SAR 399 billion by the end of 2025.
Real GDP grew by 4.6% in 2025, driven by strong growth in non-oil activities, which increased by 5.1%. This reflects the continued success of comprehensive reforms.
Non-oil activities also played a key role in driving the growth, contributing 2.8% during the same period.
The Ministry of Finance’s forecasts in the 2025 approved budget show that the real GDP growth for the full year was in line with the growth rate of actual data.
Meanwhile, real GDP of oil activities grew by 5.7%, due to the gradual and flexible implementation of the plan to phase out the additional voluntary production cuts (agreed in November 2023, starting in April 2025). As a result, this will support maintaining oil production levels and the balance in the oil markets.
Inflation Rate in Kingdom
Inflation in Saudi Arabia remained relatively low compared to global inflation rates recorded in 2025.
Given that the Consumer Price Index (CPI) in the Kingdom registered 2% in 2025, slightly higher than the 1.9% estimated in the budget, while remaining below the global rate of 4.1%, according to the World Economic Outlook (WEO) issued by the International Monetary Fund (IMF).
Saudi unemployment rates continued to decline amid improving labor market dynamics in the Kingdom and expanding opportunities for national talent.
According to the Labor Force Survey published by the General Authority for Statistics (GaStat), the Saudi unemployment rate reached 7% in 2025, achieving the target set under Saudi Vision 2030. This enhancement reflects the expansion of economic activities and increased employment in the sectors that have recorded notable operational growth.
At the same time, the Saudi female participation rates in the labor market declined to reach 34.8% in 2025.
The administrative records statistics data published by GaStat also indicates continued growth in private sector employment, with the number of Saudi employees in the private sector reaching 2.5 million in the fourth quarter (Q4) of 2025, a 5.8% increase compared to the same period last year.
Saudi External Sector & Trade
The Kingdom’s external sector recorded a notable improvement in 2025. The merchandise trade balance recorded a surplus of SAR 220.10 billion, supported by continued growth in non-oil exports, including re-exports, which increased by approximately 18.9%.
On the other hand, merchandise imports increased by about 8.8% in 2025, out of which 69.2% are accounted for by intermediate and capital imports, and these imports recorded a growth of 13.8% compared to last year.
This reflects sustained demand for production inputs and capital goods that support the expansion of economic activities and enhance productive capacity in the national economy.
In addition, the net travel item in the balance of payments maintained a positive performance, recording a surplus of SAR 49.40 billion in 2025, reflecting continued growth in the tourism sector.
Furthermore, net foreign direct investment (FDI) inflows reached SAR 122.40 billion in 2025, an increase of 52.9% compared to last year, highlighting the continued attractiveness of the domestic investment environment.
Conclusion
The performance report of the actual Saudi budget by the Ministry of Finance presents key economic indicators during 2025, as well as to explain the reasons for the deviations from the approved budget estimates.
This report is one of a series of budget reports issued by the ministry in Saudi Arabia to support the transparency and fiscal disclosure initiatives undertaken by the government in line with the objectives of Saudi Vision 2030.
The finance ministry further implemented several initiatives in this regard, which include issuing and publishing periodic reports on the fiscal performance of the budget, and enhancing the level of transparency and disclosure regarding the policies and initiatives that the ministry undertakes.
Additionally, the Saudi Ministry of Finance is keen to develop further reports, such as Budget Statement, Pre-Budget Statement, Citizen’s Version, Budget Quarterly Performance Reports, and Mid-Year Economic and Fiscal Performance Reports.
The Kingdom’s transformation, progress, and the comprehensive development is driven by the ongoing implementation of the objectives of Saudi Vision 2030, which aims to enhance economic diversification, strengthen the competitiveness of the national economy, and promote fiscal sustainability.
