Targeted sectors seeing structural growth: Al-Jadaan

Mohammed Al-Jadaan, Minister of Finance 

The targeted sectors, including transportation, logistics, and energy, are undergoing significant structural growth, which is difficult to achieve in a short period, said Minister of Finance Mohammed Al-Jadaan.

Speaking at the 2025 Budget Forum, Al-Jadaan emphasized that sustainable economic growth relies on maintaining sustainable public finances, particularly in economies similar to Saudi Arabia's.

He highlighted the importance of directing public finances to sectors with a direct impact on economic development and diversification. One of the main goals of Saudi Vision 2030 is to maintain stable public finances, independent of volatile revenues from sectors like oil, ensuring consistent funding for sectors that require long-term investment.

The minister further noted that strengthening public finances is essential. He pointed out that the early stages of Vision 2030 involved reforms that some may have viewed as "painful," such as reducing subsidies and imposing taxes and fees.

However, the economy successfully navigated these changes, with the goal of reaching a stage where public finances can sustainably support economic growth, he noted.

Al-Jadaan also stressed that sustainable spending is the result of economic diversification and the effective use of tools such as debt instruments. The current focus is on high-growth sectors, including renewable energy, technology, and the localization of supply chains.

According to data available with Argaam, the Cabinet approved the state budget for 2025, with total expenditures set at SAR 1.285 trillion and estimated revenues at SAR 1.184 trillion, projecting a deficit of SAR 101 billion.

For the 2024 budget, revenues were estimated at SAR 1.230 trillion and expenditures at SAR 1.345 trillion, resulting in a projected deficit of SAR 115 billion.