Saudi Arabia Prioritizes Productive Borrowing to Drive Investment and Growth
Finance Minister Al-Jadaan reiterates commitment to strategic investments over tax hikes or austerity.
Riyadh, Saudi Arabia – In a move signaling the Kingdom's dedication to fostering economic growth through strategic investments, Finance Minister Mohammed Al-Jadaan emphasized that Saudi Arabia borrows to fund programs aimed at creating investment and employment opportunities.
This strategy is in line with the government’s focus on developing tourism, industry, technology, and logistics sectors, as reported by Asharq.The minister's statements came during a discussion at the Atlantic Council's event alongside the 2025 annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C., where he also highlighted Saudi Arabia’s robust economic outlook.
The IMF recently upgraded the Kingdom’s growth forecast, predicting a 4 percent increase for both 2025 and 2026.
This positive assessment reflects growing international confidence in Saudi Arabia's economic trajectory.Al-Jadaan stressed that the government has no plans to raise taxes or tighten fiscal policy, aiming instead to expand the economy’s overall size, which would naturally lead to higher revenue generation through growth.
The non-oil sector saw a 4.8 percent expansion in the first half of 2025, accounting for more than half of Saudi Arabia's GDP. This performance suggests that the Kingdom is on the right path according to Al-Jadaan, given the lower borrowing costs involved.Saudi Arabia maintains one of the lowest debt-to-gross domestic product (GDP) ratios among G20 nations, with no plans to approach 50 percent, as per a disciplined fiscal policy.
The IMF's latest report attributes the stronger outlook to non-oil sector expansion and continued investment momentum, in line with Vision 2030 objectives that seek economic diversification.The government’s spending is guided by Crown Prince Mohammed bin Salman’s directive, which prioritizes public interest in all economic programs.
Al-Jadaan underscored that projects are re-evaluated regularly according to their sense and viability, ensuring alignment with national priorities.Contrary to speculation about scaling back on spending, Al-Jadaan confirmed Saudi Arabia's continued generous investment in tourism, industry, technology, and artificial intelligence sectors.
He also revealed that some projects have been accelerated, particularly in logistics, to support the burgeoning growth of tourism and manufacturing industries.The Public Investment Fund (PIF) has completed a comprehensive portfolio review, with an updated strategy set for imminent announcement.
Al-Jadaan characterized the current budget deficit as intentional, reflecting the government's strategic choice to invest in economic diversification.He further highlighted the significance of prudent borrowing, stating that when directed towards productive areas such as infrastructure, connectivity, and human capital development, it translates into long-term wealth rather than a financial burden for future generations.
This strategy is in line with the government’s focus on developing tourism, industry, technology, and logistics sectors, as reported by Asharq.The minister's statements came during a discussion at the Atlantic Council's event alongside the 2025 annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C., where he also highlighted Saudi Arabia’s robust economic outlook.
The IMF recently upgraded the Kingdom’s growth forecast, predicting a 4 percent increase for both 2025 and 2026.
This positive assessment reflects growing international confidence in Saudi Arabia's economic trajectory.Al-Jadaan stressed that the government has no plans to raise taxes or tighten fiscal policy, aiming instead to expand the economy’s overall size, which would naturally lead to higher revenue generation through growth.
The non-oil sector saw a 4.8 percent expansion in the first half of 2025, accounting for more than half of Saudi Arabia's GDP. This performance suggests that the Kingdom is on the right path according to Al-Jadaan, given the lower borrowing costs involved.Saudi Arabia maintains one of the lowest debt-to-gross domestic product (GDP) ratios among G20 nations, with no plans to approach 50 percent, as per a disciplined fiscal policy.
The IMF's latest report attributes the stronger outlook to non-oil sector expansion and continued investment momentum, in line with Vision 2030 objectives that seek economic diversification.The government’s spending is guided by Crown Prince Mohammed bin Salman’s directive, which prioritizes public interest in all economic programs.
Al-Jadaan underscored that projects are re-evaluated regularly according to their sense and viability, ensuring alignment with national priorities.Contrary to speculation about scaling back on spending, Al-Jadaan confirmed Saudi Arabia's continued generous investment in tourism, industry, technology, and artificial intelligence sectors.
He also revealed that some projects have been accelerated, particularly in logistics, to support the burgeoning growth of tourism and manufacturing industries.The Public Investment Fund (PIF) has completed a comprehensive portfolio review, with an updated strategy set for imminent announcement.
Al-Jadaan characterized the current budget deficit as intentional, reflecting the government's strategic choice to invest in economic diversification.He further highlighted the significance of prudent borrowing, stating that when directed towards productive areas such as infrastructure, connectivity, and human capital development, it translates into long-term wealth rather than a financial burden for future generations.
