RIYADH — Saudi Minister of Finance Mohammed Al-Jadaan highlighted key economic achievements and priorities during a press conference following the approval of the 2025 state budget. He emphasized Saudi Arabia's robust fiscal position, transformative economic reforms, and the government's commitment to sustainable growth and efficient spending. Al-Jadaan noted the Kingdom's remarkable structural transformation, achieved at an unprecedented pace globally. He attributed this to the success of Vision 2030 reforms, which have diversified the economy and reduced reliance on oil revenues. Since 2016, non-oil revenues have surged 154 percent, marking a critical milestone where the Saudi economy is less affected by oil price fluctuations. "Economic indicators are promising," he said, while citing the nominal GDP reaching SR 4.1 trillion. Al-Jadaan also highlighted tourism as the second most significant factor impacting the balance of payments after oil, underscoring its growing importance in the national economy. The minister outlined significant progress in private sector contributions and employment. The share of private investment in the economy has increased from 16 percent in 2016 to 25 percent, and the number of Saudis employed in the private sector has risen by 24 percent since the launch of Vision 2030. These advancements align with the government's strategy to empower the private sector as a key driver of economic growth. Despite global economic challenges, Al-Jadaan affirmed the government's ability to maintain inflation at manageable levels, projecting it at 1.9 percent in 2025. He stressed the importance of efficient project spending to prevent waste and ensure fiscal discipline, a cornerstone of the Kingdom's financial strategy. Referring to property expropriations, Al-Jadaan stated that the government avoids such actions unless absolutely necessary. "The government is keen on expropriating properties only if it is found absolutely necessary. There was no alternative other than demolition of Jeddah's random neighborhoods for which significant funds were allocated for compensation," he said while noting that a total of SR55 billion was paid in compensations in 2024, while the remaining amount will be disbursed in 2025. Al-Jadaan also emphasized the government's dedication to achieving Vision 2030 goals, enhancing the quality of life for citizens, and fostering a thriving and diversified economy. He reaffirmed that the government's fiscal policies are designed to support long-term economic stability while addressing global challenges.
