Economy Saudi budget deficit jumps fourfold as oil slumps By Pramod Kumar May 6, 2025, 10:58 AM Saudi Aramco/Handout via Reuters Saudi Aramco's trucks are seen during exploration in the Empty Quarter. Oil revenues fell 18 percent year on year to SAR150 billion in the first quarter of 2025 $16bn from $3.3bn last year Oil revenues down 18% Non-oil revenues up by 2% Saudi Arabia’s budget deficit rose nearly fourfold in the first quarter of 2025 compared to the same period last year, driven by a sharp drop in oil revenues. The kingdom reported a budget deficit of SAR59 billion ($16 billion) in the quarter ended March 2025 from $3.3 billion a year before. Total revenues fell 10 percent to SAR264 billion, as spending rose 5 percent to SAR322 billion. Oil revenues fell 18 percent year-on-year to SAR150 billion. Saudi officials are reported to be briefing allies and industry experts that the country is unwilling to prop up the oil market with further supply cuts and can handle a prolonged period of low prices. Non-oil revenues rose 2 percent year on year to SAR114 billion. Public debt reached SAR 1.3 trillion in the first quarter, compared to SAR1.2 trillion by the end of 2024. Military spending stood at SAR51 billion, while expenditure on education reached SAR54 billion. In January the finance ministry anticipated a budget deficit of SAR101 billion for the year, with nearly SAR38 billion of debt repayment. The kingdom is estimated to need funding of SAR139 billion in 2025 to cover the potential budget deficit. Goldman Sachs expects oil at $60 after Opec+ decision Opec+ accelerates oil output hikes despite weak demand PIF’s US portfolio weathers ‘Liberation Day’ storm Last month the International Monetary Fund (IMF) projected Saudi government’s gross debt to hit 44.5 percent of GDP by 2029. It expects the kingdom’s budget deficit as a share of GDP to rise to nearly 5 percent this year and in 2026, up from 2.8 percent in 2024. Forecasts for Saudi GDP growth have also been downgraded amid heightened uncertainty around US trade policies. AGBI reported that Saudi Arabia has various assets it could sell as the drop in oil prices pushes up the country’s 2025 budget deficit, economists have said. Saudi Arabia has about $2.5 trillion in public assets including Saudi Aramco. Excluding the state-owned oil giant, the country has about $600 billion of domestic assets it could sell, Goldman Sachs estimates. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
