Saudi Arabia Sees Revenue Increase to $336 Billion Amid Shift to Non-Oil Income
Government revenues rise by 4% in 2024, driven by growth in non-oil income despite a widening budget deficit.
Saudi Arabia's total government revenues reached SR1.26 trillion ($336 billion) in 2024, marking a 4% increase from the previous year and exceeding initial budget estimates by 7%, according to the latest report from the Ministry of Finance released on Thursday.
Total government expenditures stood at SR1.37 trillion, reflecting a 6% year-on-year increase.
The budget deficit widened to SR115.63 billion, up 43% from the previous year, although this figure is in line with projections.
The increase in revenues was largely attributed to a significant rise in non-oil income, which constituted 40% of the total revenues, amounting to SR502.47 billion, representing a 9.78% year-on-year increase.
Taxes on goods and services were the predominant source of non-oil revenues, comprising 57.5% of the non-oil total and increasing by 10.03% from 2023. Other major contributors included non-tax revenues at SR121.94 billion, other taxes at SR35.65 billion, taxes on income, profits, and capital gains at SR31.57 billion, and taxes on international trade and transactions amounting to SR24.5 billion.
Despite oil remaining a crucial revenue source, its share of total government income declined from 62.24% in 2023 to 60% in 2024. Crude oil and petroleum product revenues reached SR756.62 billion, marking a decline primarily linked to Saudi Arabia’s commitment to production cuts as part of the OPEC+ arrangements aimed at stabilizing the global oil market.
The Kingdom maintains an expansionary fiscal approach, with increased government spending aligned with Vision 2030 projects focusing on economic diversification and infrastructure development.
Employee compensation was the largest category of expenditure, growing by 4% to SR558.92 billion, while spending on goods and services constituted 24% of total expenditures, totaling SR311.25 billion.
Capital expenditures for non-financial assets accounted for 14%, reaching SR190.6 billion.
In the fourth quarter of 2024, government expenditures totaled SR360.52 billion, a 9% decrease from the same period in 2023. Total revenues for the final quarter were SR302.86 billion, reflecting a 15% decrease year-on-year, driven by a significant reduction in oil revenues, which fell by 31%, contrasted by a 21% growth in non-oil revenue.
Saudi Arabia's public debt increased to SR1.22 trillion by the end of 2024, indicating a 16% rise from the previous year.
Domestic debt represented 61% of the total, while foreign debt constituted 39%.
The government strategically utilizes public debt to finance major projects, central to its Vision 2030 initiative.
The demand for Saudi debt remains strong in international markets, reinforcing the country's favorable credit ratings and fiscal policies.
Authorities are actively managing debt levels to support growth while ensuring that borrowing does not exceed fiscal limits.
This approach aims to generate long-term returns through infrastructure investments and economic diversification efforts.
Total government expenditures stood at SR1.37 trillion, reflecting a 6% year-on-year increase.
The budget deficit widened to SR115.63 billion, up 43% from the previous year, although this figure is in line with projections.
The increase in revenues was largely attributed to a significant rise in non-oil income, which constituted 40% of the total revenues, amounting to SR502.47 billion, representing a 9.78% year-on-year increase.
Taxes on goods and services were the predominant source of non-oil revenues, comprising 57.5% of the non-oil total and increasing by 10.03% from 2023. Other major contributors included non-tax revenues at SR121.94 billion, other taxes at SR35.65 billion, taxes on income, profits, and capital gains at SR31.57 billion, and taxes on international trade and transactions amounting to SR24.5 billion.
Despite oil remaining a crucial revenue source, its share of total government income declined from 62.24% in 2023 to 60% in 2024. Crude oil and petroleum product revenues reached SR756.62 billion, marking a decline primarily linked to Saudi Arabia’s commitment to production cuts as part of the OPEC+ arrangements aimed at stabilizing the global oil market.
The Kingdom maintains an expansionary fiscal approach, with increased government spending aligned with Vision 2030 projects focusing on economic diversification and infrastructure development.
Employee compensation was the largest category of expenditure, growing by 4% to SR558.92 billion, while spending on goods and services constituted 24% of total expenditures, totaling SR311.25 billion.
Capital expenditures for non-financial assets accounted for 14%, reaching SR190.6 billion.
In the fourth quarter of 2024, government expenditures totaled SR360.52 billion, a 9% decrease from the same period in 2023. Total revenues for the final quarter were SR302.86 billion, reflecting a 15% decrease year-on-year, driven by a significant reduction in oil revenues, which fell by 31%, contrasted by a 21% growth in non-oil revenue.
Saudi Arabia's public debt increased to SR1.22 trillion by the end of 2024, indicating a 16% rise from the previous year.
Domestic debt represented 61% of the total, while foreign debt constituted 39%.
The government strategically utilizes public debt to finance major projects, central to its Vision 2030 initiative.
The demand for Saudi debt remains strong in international markets, reinforcing the country's favorable credit ratings and fiscal policies.
Authorities are actively managing debt levels to support growth while ensuring that borrowing does not exceed fiscal limits.
This approach aims to generate long-term returns through infrastructure investments and economic diversification efforts.