Kingdom of Saudi Arabia · المملكة العربية السعوديةGovernment Budget
Fiscal Year 2024
Revenue by Source
Max = SAR 726B (Oil & Gas Revenues) · Total SAR 1,172BExpenditure by Function
Max = SAR 390B (Vision 2030 & Capital) · Total SAR 1,332BOil Dependency: 62% of Revenue Still Comes from Hydrocarbons
Despite Vision 2030's diversification goals, oil and gas revenues accounted for approximately 62% of total government receipts in 2024, down from ~90% in 2014. Saudi Aramco is the fulcrum of public finance — the government collected royalties, income taxes, and dividends from Aramco totalling ~SAR 726B. The fiscal breakeven oil price (the Brent price needed to balance the budget) stands at approximately $96–100/barrel, well above average 2024 Brent prices of ~$80, directly explaining the deficit.
Oil: ~62% of all revenueNEOM & Mega-Projects: The SAR 5 Trillion Bet
Saudi Arabia is executing the most ambitious state-led capital programme in the world. NEOM alone is budgeted at over $500B, encompassing The Line (a 170km linear city), Sindalah Island, and Oxagon. The Red Sea Project, Diriyah Gate, and Qiddiya add hundreds of billions more. The Public Investment Fund (PIF), with ~$760B in assets, is the primary vehicle, though the government budget funds significant tranches annually. Critics note severe cost and timeline overruns, with The Line reportedly scaled back dramatically.
NEOM: $500B+ · PIF: $760B AUMDefence: World's Top 5 Military Spender
At approximately 5.6% of GDP, Saudi Arabia is consistently one of the five largest military spenders in the world in absolute terms and among the highest by GDP share. The MoD budget covers the Royal Saudi Armed Forces, while the Saudi Arabian National Guard (SANG) operates under a separate command structure. Saudi Arabia is a top buyer of US, UK, and French weapons systems. Ongoing operations and regional security concerns — particularly Yemen and the Iran rivalry — sustain elevated defence outlays.
Defence: ~5.6% GDP · top-5 globalEducation: SAR 198B — Largest Social Allocation
Education receives the largest social spending allocation at SAR 198B, or roughly 14.9% of all expenditure, reflecting the government's priority to transform a young population (median age ~29) into a skilled, employment-ready workforce. Over 60% of Saudis are under 35. The challenge is converting educational investment into private-sector employment: the government targets raising Saudi private-sector participation from under 20% to over 35% by 2030.
Education: SAR 198B · 14.9% of spendingNo Income Tax — VAT Now the Fiscal Backbone of Diversification
Saudi Arabia levies zero personal income tax on individuals, a fundamental pillar of the social contract between the Al Saud monarchy and citizens. The government tripled VAT from 5% to 15% in July 2020 to offset pandemic-era oil revenue collapses, generating a sharp short-term consumer price shock but dramatically expanding the non-oil revenue base. VAT now contributes ~SAR 175B (~14.9% of total revenue), making it the single largest non-oil revenue source.
No income tax · VAT 15% since 2020Fiscal Breakeven ~$97: The Oil Price Vulnerability
The IMF estimates Saudi Arabia's fiscal breakeven oil price at approximately $96–100 per barrel for 2024 — meaning the government needs oil at roughly that price to balance the budget. Brent crude averaged around $80/barrel in 2024, generating the ~SAR 160B deficit. This structural tension between ambitious spending targets and volatile hydrocarbon revenues is the defining feature of Saudi public finance, and drives both the urgency of Vision 2030 and the pace of sovereign borrowing.
Breakeven: ~$97/bbl vs ~$80 actualPrimary sources: Saudi Ministry of Finance — 2024 Pre-Budget Statement and Annual Budget; General Authority for Statistics (GASTAT) — GDP and National Accounts 2024; Saudi Aramco Annual Report 2024; Public Investment Fund (PIF) Annual Report 2024; IMF — Article IV Consultation: Saudi Arabia 2024; World Bank — Saudi Arabia Economic Monitor; OECD — Revenue Statistics Non-OECD: Saudi Arabia; SIPRI Military Expenditure Database 2024.
Methodology: All figures are central government (general government basis where stated). GDP: ~SAR 4,275B (~$1,140B at peg of 3.75 SAR/USD). Revenue: ~27.4% GDP; Expenditure: ~31.2% GDP; Deficit: ~3.7% GDP. Public debt: ~29.5% GDP. Saudi Arabia maintains a hard peg to the USD at 3.75 SAR/USD. Oil & gas revenues are consolidated from Saudi Aramco royalties, hydrocarbon income taxes (~85%), and government-declared Aramco dividends. Vision 2030 capital spending includes both direct budget allocations and PIF co-financing; PIF off-budget investments are not included in headline expenditure. Zakat (Islamic wealth levy of 2.5%) applies to Saudi and GCC nationals in lieu of corporate income tax. Defence figures represent official MoD + SANG combined allocation; classified procurement may not be fully reflected.