On July 31, the Saudi Ministry of Finance released its budget report for the second quarter of 2025. The report revealed that non-oil revenues have now accounted for nearly half of the total government income in Saudi Arabia. As the world’s largest oil exporter, Saudi Arabia’s total revenue surged by nearly 14.4% from April to June, reaching 301.59 billion Riyals, with 149.861 billion Riyals coming from non-oil sectors.
Analysts believe this new milestone reflects the measurable results of a series of fiscal reforms implemented by Saudi Arabia to shed its reliance on oil under the “Vision 2030.”
▲On July 31, 2025, local time in Riyadh, Saudi Arabia, 2025 Saudi eSports World Cup. Photo credit: Visual China
The report indicates that in the second quarter of 2025, Saudi Arabia’s non-oil revenue grew by 7% year-on-year, reaching 149.861 billion Riyals (approximately $39.9 billion). This growth has led to non-oil revenue accounting for 49.7% of the total quarterly revenue, almost equal to oil revenue.
It is reported that the growth in non-oil revenue was primarily driven by tax revenue, with goods and services tax revenue reaching 74.95 billion Riyals and income tax and profit tax revenue at 13.729 billion Riyals. This growth partially offset the impact of the decline in oil revenue. The report shows that Saudi Arabia’s oil revenue for the quarter was 151.7 billion Riyals (approximately $40.4 billion), a significant decrease of 29% compared to the same period last year.
This quarter, the Saudi government recorded a budget deficit of $9.2 billion, significantly narrowing from 41.1% of the first quarter of 2025. Additionally, thanks to OPEC+ production adjustments, Saudi Arabia’s oil revenue actually increased by 1.28% month-on-month (compared to the first quarter), showing signs of recovery.
▲ On May 10, 2025, local time in Riyadh, Saudi Arabia, the traffic is bustling near the King Abdullah Financial Center. Photo credit: Visual China
Analysts believe that under the “2030 Vision,” Saudi Arabia’s financial and economic transformation is yielding measurable results, aimed at reducing reliance on oil and establishing long-term economic resilience. Compared to the volatility of the oil industry, non-oil sectors are considered more stable and capable of generating more job opportunities.
The core driving force behind this transformation is the transformation of the Public Investment Fund (PIF), which was originally a domestic entity but has now become a global sovereign wealth fund, investing its capital in industries aligned with future economic trends. Its investment portfolio spans AI research and development, global startups, large technology companies, and collaborations in autonomous driving technology. Additionally, it holds shares in numerous companies including Starbucks, Disney, Boeing, and Citigroup.
From an external perspective, the decline in oil prices has put pressure on Saudi Arabia’s revenues, with an estimated fiscal deficit of about $27 billion for the year. The International Monetary Fund (IMF) raised its GDP growth forecast for Saudi Arabia in 2025 to 3.5% in June, partly due to the robust demand for government-led large projects and support from the OPEC+ group in gradually lifting oil production cuts.