RIYADH — Saudi Arabia’s non-oil revenues climbed 6.6% year-on-year in the second quarter of 2025, reaching SR149.86 billion ($39.96 billion), according to the Ministry of Finance.
This marks a major fiscal milestone, with non-oil income now contributing 49.7% of total government revenues — up from less than 40% a year earlier.
Meanwhile, oil revenues dropped 28.76% to SR151.73 billion, pulling total government income down 15% to SR301.6 billion. The decline is linked to voluntary OPEC+ production cuts introduced in late 2023 to stabilize oil prices, with phased output restoration set to return production to pre-cut levels by September 2025.
What’s Driving the Non-Oil Growth?
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Taxes on goods and services: SR74.95 billion (50% of non-oil revenues)
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Other revenues: SR28.9 billion (fees, fines, port charges, advertising, central bank income)
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Corporate zakat: SR26 billion
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Income & capital gains taxes: SR13.73 billion
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Trade taxes: SR6.32 billion
The growth reflects robust performance in retail, hospitality, transport, finance, and tourism — sectors central to Vision 2030’s diversification agenda.
Expenditure & Fiscal Balance
Government spending fell 8.9% to SR336.13 billion in Q2. Employee compensation led expenditures at SR140.40 billion, followed by goods and services (SR73.58 billion). Capital spending dropped nearly 39% to SR39.9 billion.
The quarter closed with a SR34.53 billion deficit, 41% smaller than Q1 but more than double last year’s Q2 figure — a planned increase as Vision 2030 mega-projects progress.
Debt & Economic Outlook
Public debt rose 14.1% to SR1.39 trillion, with 63% domestic and 37% external. The IMF projects:
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Non-oil GDP growth: 3.4% in 2025
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Overall GDP growth: 3.6% in 2025
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Fiscal deficit peaking at 4% of GDP before narrowing to ~3.2% by 2030
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Debt-to-GDP staying moderate at 40.6% by decade’s end
With non-oil revenues approaching oil income, Saudi Arabia’s fiscal structure is becoming more resilient to oil price volatility, supported by sustained growth in tourism, logistics, finance, and manufacturing.
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