Prime Highlights:

• Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said the Kingdom’s borrowing focuses on funding productive investments instead of raising taxes or cutting spending.
• The strategy supports Vision 2030 by boosting key sectors such as tourism, industry, technology, and logistics to drive long-term economic growth.

Key Facts:

• The IMF has raised Saudi Arabia’s growth forecast to 4% for both 2025 and 2026, reflecting strong confidence in the Kingdom’s economy.
• Non-oil activities grew by 4.8%in the first half of 2025, contributing more than half of Saudi Arabia’s GDP.

Key Background:

Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said the Kingdom’s borrowing plan is focused on funding productive and strategic investments instead of raising taxes or cutting spending.

Speaking at the Atlantic Council during the 2025 IMF and World Bank meetings in Washington, D.C., Al-Jadaan said Saudi Arabia borrows to fund projects that grow the economy and create jobs. He said the plan focuses on tourism, industry, technology, and logistics, supporting Vision 2030’s goal to diversify the economy beyond oil.

He also pointed to the IMF’s recent upgrade of the Kingdom’s growth forecast to 4 percent for both 2025 and 2026 as a reflection of international confidence in Saudi Arabia’s economic outlook.

“The Kingdom has no plans to increase the tax burden on its citizens or businesses,” Al-Jadaan stated. “Our objective is to expand the economy’s overall size so that growth itself generates higher revenues.”

He added that non-oil activities grew by 4.8 percent in the first half of 2025, contributing more than half of Saudi Arabia’s GDP. With one of the lowest debt-to-GDP ratios among G20 nations, the minister dismissed speculation about debt levels nearing 50 percent, describing the current fiscal policy as disciplined and sustainable.

Al-Jadaan stressed that the government’s spending decisions are guided by Crown Prince Mohammed bin Salman’s directive to prioritize public interest. “If a project no longer makes sense, we will not hesitate to adjust, suspend, or extend it,” he said, reaffirming the Kingdom’s pragmatic approach to investment.

He added that Saudi Arabia continues to invest strongly in tourism, technology, and logistics to boost growth in manufacturing and travel. He also said the Public Investment Fund has finished reviewing its projects and will soon announce a new strategy.

Describing the current budget deficit as intentional, Al-Jadaan explained that Saudi Arabia views it as a strategic investment in long-term economic diversification and wealth creation for future generations.