Saudi non-oil revenues rise to $40b in Q2

RIYADH, Aug 09 (Arab News): Saudi Arabia's non-oil revenues rose by 6.6 per cent in the second quarter of 2025 compared to the same period of last year, reaching SR149.86 billion ($39.96 billion).
According to data from the Ministry of Finance's quarterly budget performance report, this marks a key fiscal milestone, with non-oil revenues now accounting for 49.7 per cent of total government income, up from less than 40 per cent a year ago.
Oil income fell by 28.76 per cent during this period, totaling SR151.73 billion compared to SR213 billion a year earlier. This pulled total government revenues down by 15 per cent annually to SR301.6 billion.
The shift reflects two main drivers: the Kingdom's economic diversification push under Vision 2030, and the voluntary oil production cuts implemented under OPEC+ agreements in late 2023 to stabilize global prices.
These cuts, initially amounting to 1 million barrels per day, have been unwound in gradual phases throughout 2025, with output increases of 138,000 bpd in April, followed by 411,000 bpd increments in May and June.
Production is on track to return to pre-cut levels by September, earlier than initially planned, as the nation seeks to balance market stability with reclaiming market share.
For the first half of 2025, the Kingdom's revenues stood at 47.74 per cent of the year's budgeted target, signaling alignment with fiscal planning.
The largest contributor to non-oil income was taxes on goods and services, which accounted for 50 per cent of the total, or SR 74.95 billion.
"Other revenues" followed with a 19.26 per cent share or SR28.9 billion, encompassing earnings from government entities, including the Saudi Central Bank, administrative fees, and port service charges, as well as advertising income, and fines.
Other taxes, primarily corporate zakat, totaled SR26 billion, while income, profit, and capital gains taxes generated SR13.73 billion. Taxes on international trade and transactions added SR6.32 billion.
Much of this growth is linked to robust activity in non-hydrocarbon sectors.
Saudi Arabia's General Authority of Statistics had reported that the Kingdom's gross domestic product grew by 3.4 per cent year on year in the first quarter, driven primarily by a 4.9 per cent expansion in non-oil transactions while oil activities contracted by 0.5 per cent.
The strongest gains came from wholesale and retail trade, restaurants and hotel sector, which grew by 8.4 per cent, transport and communications by 6 per cent, and finance and business services by 5.5 per cent.
This robust non-oil sector performance, reinforced by tourism, entertainment, technology, and manufacturing growth under Vision 2030, has translated into higher consumption taxes, service fees, and other government income streams, helping to further lift non-oil revenues in the second quarter budget performance report, even as oil revenues declined year on year.