2024: A year of fiscal discipline, economic growth
These reforms have driven robust, non-oil sector growth, reduced unemployment to record lows, and kept inflation below global averages.
The government remains committed to advancing fiscal policies that reinforce economic stability and ensure long-term sustainability.
These measures have supported the Kingdom's development agenda while maintaining fiscal discipline, stimulating growth and preserving healthy public reserves and debt levels.
In 2024, total revenues exceeded the approved budget by about 7.4 percent, thanks to stronger-than-expected oil and non-oil performance.
Higher oil revenues were driven by performance-linked dividends, while non-oil revenues rose 14.1 percent over the budget, reflecting the expansion of non-oil activities and continued efforts to strengthen non-oil revenue streams.
Total expenditure rose by about 9.9 percent over the approved budget, reflecting significant progress toward Vision 2030 goals and the execution of key projects. This increase was also driven by advancing some expenditure originally planned for future years, raising both operational and capital spending.
The higher spending supported efforts to sustain and enhance social programs, mitigating the impact of economic changes on targeted beneficiaries.
Additional measures focused on improving public service quality, enhancing quality of life, empowering the private sector and creating a more attractive investment climate.
The actual fiscal deficit for 2024 was around SR116 billion ($31 billion), or 2.5 percent of gross domestic product, exceeding the approved deficit of SR79 billion (1.9 percent of GDP).
By the end of 2024, public debt rose to nearly SR1.2 trillion, about 26.2 percent of GDP, up from SR1.1 trillion a year earlier. Government reserves stood at roughly SR390 billion.
The General Authority for Statistics reported a decline in real GDP growth for 2024 compared to the budgeted forecast of 4.4 percent, mainly due to a 4.4 percent drop in oil sector activity. This reflects the Kingdom's voluntary production cuts under the OPEC+ framework and its commitment to energy market stability.
Despite the decline in the oil sector, non-oil sectors outperformed projections, growing by 5.2 percent and driving overall real GDP growth of about 2 percent. This was supported by ongoing economic diversification and structural reforms that boosted activity.
In 2024, the Kingdom recorded an inflation rate of 1.7 percent, well below the global average and the budgeted estimate of 2.2 percent.
These results underscore the government's strong commitment to Vision 2030 through responsible fiscal policy, targeted investments and broad economic reforms.
Despite a challenging global environment — marked by oil market volatility, inflationary pressures, and geopolitical uncertainty — the Saudi economy showed resilience, adaptability, and steady progress toward diversification.
Structural and fiscal reforms enabled the government to navigate 2024's challenges, driving strong growth in non-oil activities.
These reforms also lowered unemployment to a historic 7 percent in 2024 and kept inflation well below global trends.
The government remains committed to forward-looking fiscal policies that support economic stability and ensure long-term sustainability.
Maintaining low inflation, boosting non-oil revenues, and expanding non-oil activity have helped mitigate risks from declining oil revenues and price volatility.
These achievements highlight the effectiveness of the reform agenda and the Kingdom's commitment to a diversified, sustainable economic future.
With public debt at sustainable levels and reserves healthy, the Kingdom is well-positioned to advance its transformative agenda.
Looking ahead, Saudi Arabia reaffirms its commitment to enhancing competitiveness, improving citizens' quality of life, empowering the private sector, and building a vibrant, inclusive economy.
Through fiscal discipline, innovation, and strategic investment, the Kingdom aims to strengthen the foundations of long-term sustainability and prosperity — balancing growth with fiscal prudence under its expansionary spending policies.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
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