Prime Highlights
- Saudi Arabia is investing heavily in infrastructure, education, health, and security, supporting long-term economic growth and diversification beyond oil.
- Non-oil revenue rose to SR505.3 billion in 2025, reflecting progress in the Kingdom’s economic diversification strategy.
Key Facts
- Government capital spending increased 18% to SR50.9 billion in Q4 2025, funding key development and infrastructure projects.
- Total government expenditure for 2025 reached SR1.39 trillion, with strategic investments in education, health, the military, and public administration.
Background
Saudi Arabia’s budget deficit widened to SR94.85 billion in the fourth quarter of 2025 as higher government spending and weaker oil revenues weighed on public finances, according to data from the Saudi Ministry of Finance.
Government expenditure rose to SR371.6 billion in the three months to December, up 3 percent from the same period a year earlier. The company sharply increased capital spending by 18 percent, reaching SR50.9 billion, as it continued investing in infrastructure and development projects.
Total quarterly revenue reached SR276.7 billion. While this was higher than the previous quarter, it fell about 9 percent year on year due to lower oil income. Oil revenue stood at SR154.2 billion in the fourth quarter, down 10 percent from a year earlier despite a rise in production.
For the full year, oil revenue fell about 20% to SR606.5 billion, down from SR756.6 billion in 2024. Non-oil revenue, a central part of the Kingdom’s economic diversification plan, increased slightly to SR505.3 billion in 2025 from SR502.5 billion the previous year.
Saudi Arabia kept an expansionary fiscal policy during the year. Total government spending reached SR1.39 trillion, up 1 percent from 2024. Education spending was increased by 4 percent to SR212.5 billion, and health and social development spending by 2 percent to SR278.9 billion. Military and security spending grew about 5 percent to SR249.1 billion, and public administration spending climbed 7 percent.
For the full fiscal year, total revenue reached SR1.11 trillion, while total expenditure was SR1.388 trillion, causing a deficit of SR276.6 billion. The deficit grew larger than expected as oil income fell.
Public debt increased to SR1.52 trillion at the end of 2025 from SR1.22 trillion a year earlier, as the government raised borrowing to cover fiscal shortfalls while continuing to fund major projects.
The data show that Saudi Arabia is keeping spending high to boost economic growth and diversification, even though lower oil revenues are straining the budget.
