Saudi Gazette report

RIYADH — Saudi Arabia recorded a 7 percent increase in non-oil revenues during the second quarter of 2025, reaching SR149.861 billion ($39.9 billion), up from SR140.602 billion ($39.5 billion) in the same period last year.

This surge brought non-oil revenue to nearly half of the Kingdom’s total income for the quarter, accounting for 49.7 percent of all revenues.

According to the Ministry of Finance, overall revenues for Q2 stood at SR301.595 billion ($80.4 billion), while expenditures reached SR336.129 billion ($89.6 billion), resulting in a budget deficit of SR34.534 billion ($9.2 billion) for the quarter.

Oil revenues, however, saw a significant annual drop of 29 percent, falling to SR151.7 billion. Despite this decline, gains in taxation and other non-oil sectors helped cushion the impact.

Revenues from income and profit taxes increased to SR13.729 billion, taxes on goods and services climbed to SR74.950 billion, and trade-related tax income grew to SR6.323 billion. Other taxes and miscellaneous income also recorded moderate growth.

On the spending side, government expenditures fell by 9 percent compared to the same quarter last year, declining from SR368.932 billion to SR336.129 billion.

In the first half of 2025, total revenues reached SR565.210 billion ($150.7 billion), while spending exceeded SR658.446 billion ($175.5 billion), leaving the government with a cumulative deficit of SR93.236 billion ($24.8 billion).

Non-oil revenues during this period totaled SR263.667 billion, with oil revenues contributing SR301.543 billion.

The report also noted a 2 percent year-on-year reduction in government spending during the first six months of the year, compared to SR674.753 billion in H1 2024.

Saudi Arabia’s public debt rose to approximately SR1.39 trillion by the end of June, with SR871.3 billion in domestic debt and SR515.136 billion in foreign obligations.

The state reserve increased to SR396.954 billion, while the current account balance stood at SR102.587 billion.