Saudi Arabia has a $31 billion budget deficit in 2024 due to lower oil revenues, which is more than expected
Saudi Arabia had a $31 billion (SAR 115.6 billion) budget shortfall in 2024 because oil earnings fell in the year’s second half.
Saudi Arabia’s 2024 Financial Performance
Saudi Arabia earned $335.7 billion (SAR 1.26 trillion) in revenue in 2024, which was higher than the expected $312.5 billion (SAR 1.17 trillion), according to the Ministry of Finance.
However, government spending was also higher than planned. It reached $366.5 billion (SAR 1.37 trillion) instead of the expected $333.5 billion (SAR 1.25 trillion).
As a result, the country had a budget deficit of $30.8 billion (SAR 115.6 billion), which was more than the predicted $21.1 billion (SAR 79 billion). This was also higher than the 2023 deficit of $21.5 billion (SAR 80.9 billion). The government borrowed money to cover the shortfall.
Revenue Breakdown
Saudi Arabia made $201.7 billion (SAR 756.6 billion) from oil in 2024. Oil revenues were highest in the second quarter at $56.8 billion (SAR 213 billion) but later dropped to $50.9 billion (SAR 190.8 billion) in the third quarter and $45.5 billion (SAR 170.8 billion) in the fourth.
Non-oil revenues totaled $134 billion (SAR 502.5 billion). These peaked in the second quarter at $37.5 billion (SAR 140.6 billion), dropped to $31.5 billion (SAR 118.3 billion) in the third quarter, and slightly recovered to $35.2 billion (SAR 132 billion) in the fourth.
Compared to 2023, oil revenues grew by 0.3%, while non-oil revenues increased by 10%.
Spending Details
The biggest government expense in 2024 was employee salaries, which cost $150 billion (SAR 562.3 billion). Other major expenses included:
- Goods and services: $83.5 billion (SAR 313 billion)
- Infrastructure and other assets: $50.8 billion (SAR 190.7 billion)
- Miscellaneous costs: $33.2 billion (SAR 124.6 billion)
- Social benefits: $27.03 billion (SAR 101.4 billion)
Compared to 2023, subsidies saw the largest increase (63%), followed by miscellaneous costs (20%), financing costs (18%), and salaries/social benefits (5% each). The only decrease was in grants, which fell by 38%.
Looking Ahead
For 2025, the Saudi finance ministry expects a budget deficit of $27 billion (SAR 101 billion), which is 2.3% of the country’s GDP. This estimate was shared in the budget report released in November.
Published: 14th February 2025
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