Saudi Arabia's Economic Balancing Act: Vision 2030 Amidst Rising Deficits

Saudi Arabia reported a fiscal deficit of 115.625 billion riyals in 2024, as spending rose by 6% despite lower oil production and prices under its Vision 2030 strategy. Non-oil revenue was at 502.5 billion riyals. Updates include a 31% decline in oil revenue in Q4 to 170.9 billion riyals.

Saudi Arabia has announced a significant fiscal deficit of 115.625 billion riyals ($30.83 billion) for the year 2024, driven by a 6% increase in total spending compared to the previous year, alongside a rise in oil revenue to 756.6 billion riyals, as per data released by the finance ministry.

The kingdom is heavily investing in the Vision 2030 economic transformation strategy, focusing on private sector growth and reducing oil dependency, despite a setback in oil production and prices. This has led to an increase in the estimated 2024 deficit to 115 billion riyals from a previous estimate of 79 billion riyals.

Non-oil revenue played a crucial role, amounting to 502.5 billion riyals in 2024. However, the fourth quarter saw a notable decline, with oil revenue dropping by 31% to 170.9 billion riyals. Total revenue fell by 15% in the quarter to approximately 303 billion riyals, while total debt reached around 1.22 trillion riyals by the end of the year.