RIYADH: Saudi Arabia’s non-oil revenue increased by 6.6% in the second quarter of 2025 compared to the same quarter last year, totalling SAR 149.86 billion ($39.96 billion). This is the first time that non-oil revenue is almost equal to the oil revenue. Non-oil revenues made up about 49.7% of the total government income. It’s a rise from less than 40% a year ago, indicating a major change in the country’s revenue system. On the other hand, oil revenue fell by 28.8% year-on-year to SAR 151.73 billion ($40.4 billion), due to lower global oil prices and voluntary production cuts by OPEC+.
The main sources of income were taxes on goods and services (SAR 74.95 billion), other revenues like earnings from government entities (SAR 28.9 billion), corporate zakat (SAR26 billion), income and capital gains taxes (SAR 13.73 billion), and taxes on international trade (SAR6.32 billion). This strong growth is associated with the growth of non-hydrocarbon sectors, including wholesale and retail trade, transport, finance, tourism, and hospitality, all supported by Saudi Arabia’s Vision 2030 economic diversification plan.
Government expenditure fell by 9% to SAR 336.13 billion in Q2 2025, with the biggest reduction in grants, subsidies, and asset spending. The Kingdom recorded a budget deficit of SAR 34.53 billion for Q2 and a total deficit of SAR 93.23 billion for the first half of the year. Saudi Arabia’s financial progress under Vision 2030 shows the growing stability and the significance of non-oil revenue sources.
