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 149.86 billion riyals ($39.96bn), reports Arab News.
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 49.7pc of total government income, up from less than 40pc a year ago.
Oil income fell by 28.76pc during this period, totalling 151.73bn riyals compared to 213bn riyals a year earlier. This pulled total government revenues down by 15pc annually to 301.6bn riyals.
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 stabilise 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 47.74pc of the year’s budgeted target, signalling alignment with fiscal planning.
The largest contributor to non-oil income was taxes on goods and services, which accounted for 50pc of the total, or 74.95bn riyals.
‘Other revenues’ followed with a 19.26pc share or 28.9bn riyals, 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, totalled 26bn riyals, while income, profit, and capital gains taxes generated 13.73bn riyals. Taxes on international trade and transactions added 6.32bn riyals.
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 3.4pc year on year in the first quarter, driven primarily by a 4.9pc expansion in non-oil transactions while oil activities contracted by 0.5pc.
The strongest gains came from wholesale and retail trade, restaurants and hotel sector, which grew by 8.4pc, transport and communications by 6pc, and finance and business services by 5.5pc.
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.
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