Saudi Budget: Non-oil Revenues Continue to Rise to 472 Billion in 2024.. Growing 154% in 8 Years

The data on the expected Saudi budget for 2024, issued today, revealed that non-oil revenues will reach about 472 billion riyals in 2024, compared to about 458 billion riyals in actual revenues in 2023, an increase of 14 billion riyals, or 3%, to continue to rise for the 8th consecutive year and since the launch of the Kingdom’s Vision 2030, which made the transition to the non-oil sector its main title and the main focus of work at which all initiatives and policies emanating from the vision converge.

In recent years, the non-oil sector in the Kingdom has witnessed major shifts until it became a primary driver of the Saudi economy alongside the oil sector in light of the momentum witnessed by the Saudi economy in all sectors, to confirm international institutions, most notably the International Monetary Fund and the World Bank, that the strong growth of the non-oil sector around 5% greatly supports the continued recovery of the Saudi economy away from developments in global oil markets.

The data shows that non-oil revenues during the past 8 years of implementing the Kingdom’s Vision 2030 have grown gradually and strongly, as they doubled during the period (2016-2024) by rising from about 186 billion riyals in 2016 to about 472 billion riyals by the end of 2024, an increase of 154%. The data shows that the contribution of non-oil revenues to the total Saudi budget revenues rose from 36% in 2016 to its highest level in 2020 at 47.2% before declining to 41.8% and 32.4% in 2021 and 2022 as a result of the rise in global oil prices and the increase in oil revenues. However, in 2023, it rose again to account for about 38% of Saudi budget revenues before reaching 38.4% in 2024.

The non-oil revenues of the Saudi budget are the result of reforms and restructuring in the Saudi economy, as the tax system contributed to achieving financial stability for the budget and breaking the historical link between the state budget and global oil prices. Taxes have become a basic and stable funder of government expenditures away from the fluctuations of global oil markets. After the first 8 years of implementing the Kingdom’s Vision 2030, the revenues of the Public Investment Fund’s investments have become a major source of support for the Saudi budget, in light of the fund’s domestic and foreign investments. It has become the sixth largest sovereign fund in the world and is about to reach fifth place globally, with assets currently reaching 3.5 trillion riyals ($925 billion).