Saudi economy

The main articles are:

• Saudi Arabia
• World economy

GDP

Main article: Saudi Arabia's GDP

Financial system

Non-financial debt

2022: Aggregate non-financial debt

National debt

2025: Public debt level reaches $354 billion or 30% of GDP

Saudi Arabia's net debt in the first quarter of 2025 increased by a record $30 billion. The total public debt reached $354 billion (30% of GDP).

Despite the low level of debt by world standards, the kingdom is increasing borrowing instead of using foreign exchange reserves of $400 billion in order to maintain the rial's peg to the dollar. Analysts believe that significant borrowing will be required in the rest of the year.

Gold and foreign exchange reserves

2025: 15th in gold reserves: 323.07 tonnes

2020: 8th place in terms of gold and foreign exchange reserves: $456,961 million for November

International reserves

2024: U.S. Treasury investment rises to $140 billion

Saudi Arabia's investment in the US Treasury in June 2024 rose to its highest level since the COVID-19 pandemic.

The kingdom added $4 billion, bringing its reserves to $140 billion. Taking advantage of higher rates is key.

2023

US Treasury portfolio increase to $132 billion

Saudi Arabia increased its holdings of US Treasuries by almost $4 billion by the end of 2023, bringing the volume to its highest level since the beginning of 2021.

The amount was nearly $132 billion in December, according to the latest Treasury data.

Other major holders of U.S. government debt, including China and Germany, have also increased stocks of the risky asset, perhaps taking advantage of attractive returns.

Early, at the end of June 2023, US Treasury stocks in Saudi Arabia fell to their lowest level in more than six years.

Down to $407 billion

Saudi Arabia's foreign exchange reserves in July 2023 fell by more than $16 billion to a low of 2009, the sharpest decline since oil prices turned negative during the COVID-19 pandemic, and the kingdom used its savings to invest in US stocks.

$410 billion - minimum since 2010

Saudi Arabia's net reserves fell to $410 billion by May 2023, the lowest since 2010. This is an obvious sign that the kingdom has not yet used last year's $326 billion in oil revenues to replenish the Central Bank.

Sovereign Wealth Fund

Main article: PIF (Saudi Sovereign Wealth Fund)

Inflation

2024: Inflation for 5 years 13%

Accumulated inflation over 5 years in the G-20 countries at the end of 2024:

Argentina: 13,910%

Turkey: 734%

Russia: 46%

Brazil: 35%

India: 34%

Mexico: 31%

South Africa: 28%

Britain: 25%

Holland: 24%

US: 23%

Australia: 21%

Germany: 21%

Spain: 19%

Canada: 19%

Italy: 18%

Singapore: 17%

France: 15%

South Korea: 15%

Indonesia: 15%

Saudi Arabia: 13%

Japan: 9%

Switzerland: 6%

China: 6%

Current account

2023: Decrease in current account in Q1

Budget

2025: Deficit of $15 billion in the first quarter due to lower oil prices

2023: Deficit in the first quarter $770 million

Saudi Arabia reported a budget deficit of $770 million in the first quarter of 2023, as oil revenues fell 3% due to lower prices.

2022: Government spending tops $300 billion

2020

VAT increase from 5% to 15%

In Saudi Arabia, from July 1, 2020, the value added tax (VAT) rate increased from 5 to 15%.

The increase occurred on the basis of the royal decree of May 11, 2020 on amending the law on the VAT collection system. The decree applies to all goods and services in the commercial market of KSA.

As a result of the change in the VAT rate, the state-owned Saudi oil and gas company Saudi Aramco announced an increase in domestic gasoline prices since Wednesday. Since July 1, the cost of one liter of automotive fuel is AI-91 0.98 Saudi riyals (1SAR/0.27USD), the price of AI-95 is 1.18 riyals per liter.

State finance crisis amid oil price crash during COVID-19 pandemic

Oil wars with falling prices to the levels of the 1990s and the COVID-19 coronavirus pandemic brought Saudi Arabia to the crisis of state finance.

At the end of March 2020, the kingdom's gold and foreign exchange reserves decreased by $27 billion - a record value for 20 years of available statistics, and their total volume shrank to $464 billion - the lowest since 2011.

A third of the amount spent was used by the government, using the current account in the Central Bank, another third was spent on injecting currency into the banking system, the balance was used to compensate for the outflow of capital. The Saudi Central Bank sells reserves in the market, maintaining a fixed rate of the national currency - riyal - at 3.76 riyal per dollar.

To cover the budget deficit, which is 90% filled with oil revenues, Riyadh twice entered the international capital market this year, placing Eurobonds for $19 billion.

Starting in the summer, the Ministry of Finance of the Kingdom launches a program to optimize state finance for $100 billion riyals. It will include a 3-fold increase in VAT - from 5% to 15% - and the abolition of payments of the subsistence minimum.

In addition, a reduction in capital spending is planned for fiscal 2020 (1441-42 according to the Muslim calendar), including the Vision-2030 program - Crown Prince Mohammed bin Salman's ambitious plan to overhaul the Saudi economy with its departure from oil dependence.

2018: Military budget 8.8% of GDP

Military budget in% of GDP, 2018:

• 8.8% Saudi Arabia
• 4.3% Israel
• 3.9% Russia
• 3.2% United States
• 2.5% Turkey
• 2.4% India
• 2.3% France
• 1.9% Australia
• 1.9% China
• 1.8% United Kingdom
• 1.3% Canada
• 1.2% Germany

(SIPRI)

Investments

2024: Reduction in foreign direct investment by 19% to $20 billion

The inflow of foreign direct investment into Saudi Arabia in 2024 decreased by 19%, to $20.7 billion - at least from 2020.

The kingdom has missed its $29 billion target and aims to increase investment to more than $100 billion a year by 2030.

From 2026, the Vision 2030 program will move to the final stage with an emphasis on private investment, to reduce dependence on government support.

Stock market

2025:40% stake in Saudi Arabian issuers held by foreigners

Minerals

Oil and gas production

Main article: Oil and gas production in Saudi Arabia

2024: Raising the valuation of the country's mineral resources from $1.3 trillion to $2.5 trillion

In January 2024, Saudi Arabia revised upward the estimate of its pristine mineral resources, including phosphates, gold and rare earth metals, to $2.5 trillion from the 2016 forecast of $1.3 trillion, the country's mining minister said.

The mining industry is a key part of Riyadh's efforts to create an economy that will not depend largely on oil, suggesting a move to develop huge reserves of phosphate, gold, copper and bauxite.

Power

2020: High per capita energy consumption

and

Oil products

2025: Cost of gasoline - $0.621 per liter

Main article: Petroleum products in the world

Gasoline prices in countries worldwide (liter, US dollar) according to Global Petrol Prices, Octane-95, February 10, 2025:

Iran: $0.029

Libya: $0.031

Venezuela: $0.035

Egypt: $0.337

Algeria: $0.339

Kuwait: $0.340

Kazakhstan: $0.483

Saudi Arabia: $0.621

Russia: $0.629

UAE: $0,716

Indonesia: $0.783

Nigeria: $0.788

UNITED STATES: $0.917

Pakistan: $0.922

Brazil: $0.944

El Salvador: $1,035

Bangladesh: $1,037

Australia: $1,070

China: $1,142

Argentina: $1.148

India: $1.164

South Africa: $1.191

Japan: $1,211

Mexico: $1,243

Canada: $1,273

Turkey: $1,287

South Korea: $1,317

Chile: $1,355

Ukraine: $1,406

Czech Republic: $1,507

Poland: $1.554

Romania: $1.568

Sweden: $1,574

Spain: $1,619

Britain: $1,729

Finland: $1,765

Germany: $1,817

France: $1,827

Ireland: $1,875

Italy: $1,894

Switzerland: $1,938

Norway: $1,958

Monaco: $1,989

Netherlands: $2,037

Denmark: $2,110

Hong Kong: $3.393

The average price of gasoline in the world is $1.25 per liter.

2021: Gasoline price - $0.62 per litre

Foreign trade

2024

Trade turnover of Russia and Saudi Arabia for the year increased by 60% to $3.8 billion

According to the results of 2024, mutual trade between Russia and Saudi Arabia increased by more than 60% and exceeded $3.8 billion. In the first quarter of 2025, growth dynamics accelerated, reaching a quadruple increase compared to the same period the previous year. This was announced by the head of the Ministry of Industry and Trade of Russia Anton Alikhanov on July 7, 2025.

According to TASS, the structure of bilateral trade reflects the economic specializations of both countries. The basis of Russian exports to Saudi Arabia is agricultural products, which account for about 70% of the total supply.

Trade turnover between Russia and Saudi Arabia increased by 60% over the year, reaching $3.8 billion

The key direction of Russian exports to Saudi Arabia remains agricultural products, which account for about 70% of all supplies. The main product is wheat and barley.

The supply of meat products is growing at a high pace. Over the past five years, the volume of exports of Russian meat to the Kingdom has quadrupled, reaching 50 thousand tons in 2023. The growth of poultry and beef supplies is especially active - by 63% and 65%, respectively. In addition, Russian sunflower oil, fish and seafood are in demand on the Saudi market.

A significant share of Russian exports are mineral products - 41.23% of the total. Saudi Arabia buys fuel oil and gas oil mainly for re-export. Metals and products from them occupy the third place in volume. The supply of copper and products from it is growing especially actively. Iron and steel are also exported to the Kingdom.

In addition to traditional commodity groups, Russia supplies the Kingdom with mineral fertilizers, wood, paper products, medical and optical equipment, as well as cosmetics and confectionery.

At the same time, the structure of imports from Saudi Arabia to Russia is significantly different. The basis of supplies is chemical products. The leading position is the export of ethylene polymers in primary forms. Saudi Arabia also actively supplies polymers of propylene, plastics and products from them to Russia, as well as a wide range of organic chemical compounds - from alcohols and ethers to complex petrochemical components. Significant commodity categories also include mineral fertilizers containing nitrogen, phosphorus and potassium.

7th place in terms of fertilizer exports in the world - $5 billion

The volume of global fertilizer exports in 2024 reached $60.91 billion. This is evidenced by the data of the national statistics services and the UN platform Comtrade, with which TAdviser got acquainted in May 2025. TAdviser has prepared an infographic with the world's largest fertilizer exporting countries. Read more here.

2023: 4-fold increase in imports from China since 2008

2022

G7 countries are the main export destination

China is the largest export destination

Lion's share of exports - oil

Trade with China is bigger than with the US and EU combined

Trade China and Saudi Arabia exceeded Saudi trade with and USA the EU combined. Economic ties between the PRC and Saudi Arabia continue to strengthen after the leaders of the countries sign cooperation agreements.

Trade between China and Saudi Arabia countries grew by 32.9% on an annualized basis and exceeded $116 billion in 2022, the PRC has remained the largest trading partner of Saudi Arabia for many years.

2021

2018: Clothing exports - $101 million

Labour market

2025: Unemployment rises to 7.5%

The unemployment rate among Saudis in the third quarter of 2025 rose to 7.5% - the highest in a year, although historically this is still a low level. Activity in the labor market declined to 49%, including women.

Experts note: many simply do not go to work - someone is looking for new opportunities, someone is studying, someone is taking a vacation. At the same time, jobs for foreigners are created more actively than for local ones.

2020: Pension granted from the age of 47, real retirement age for men is 59

Saudi Arabia is the only country where citizens under 50 can retire with full pensions.

Incomes of the population

2024: Personal income tax rate - 0%

2023: Minimum wage - $958

Affluent class

2025: 12.6 millionaires per 1,000 adults in the country

Information Technology

Data centers

Main Article: Data Centers (Saudi Market)

2024: Saudi Arabia 'sat on a heap of yuan' from oil sales, demands China invest in IT

On February 19, 2024, it became known that the authorities are Saudi Arabia demanding that leading Chinese technology companies invest in the country in exchange for the opportunity to conclude large deals. In particular, Alibaba SenseTime they entered into hundreds of millions dollars of deals with Saudi Arabia with tough conditions, including the creation of joint ventures.

Riyadh is imposing increasingly stringent demands in deals with Chinese companies, the Financial Times reported. So, in some cases, enterprises from the PRC have to transfer their technological developments to the Saudi side, train local specialists or finance other projects in the country.

Saudi Arabia Demands Top Chinese Tech Companies Invest in Country in Exchange for Being Able to Strike Big Deals

The publication notes that Saudi Arabia uses its oil revenues to stimulate the domestic technology industry. It is assumed that this will modernize the economy of the kingdom. The strategy being implemented coincided with the funding crisis and weak sales of Chinese technology companies in the PRC market.

There is a hidden motivation to expand investment relations between China and Saudi Arabia. The kingdom sits on a large pile of yuan from the sale of oil in the PRC, but the use of these funds is limited. One option is to buy Chinese goods and services, says Chris Vassallo, a researcher at the Asia Policy Institute.

Chinese firm SenseTime, which develops artificial intelligence-based systems for facial recognition, was awarded a contract as part of the Neom futuristic project, which provides for the development of territory in the far northwest of Saudi Arabia. It aims to transform the state into a country of the 21st century and get rid of oil dependence. At the same time, Alibaba Cloud entered the Saudi market in 2022 through a joint venture with Saudi Telecom Group, which also collaborated with Huawei on 5G. Saudi Arabia is actively attracting foreign technology companies to develop its nascent artificial intelligence industry. At the same time, China is the largest buyer of Saudi oil.^[1]

Infrastructure

2021: $147 billion infrastructure investment plan over 9 years

In July 2021, it became known that Saudi Arabia plans to invest 550 billion riyals (147 billion dollars US) in transport and logistics over the next nine years, as Crown Prince Mohammed bin Salman seeks to turn the kingdom into a global aviation hub.

Saudi officials want to turn the capital Riyadh into a global business hub, attract more foreign talent and welcome 100 million tourists annually by 2030.

At the heart of the strategy is a plan by a sovereign state investment fund to create a new international airline with a hub in Riyadh.

Other details of the new strategy include: a "significant expansion" of airport infrastructure in Jeddah and Riyadh, advancing plans to build a train linking Jeddah to Riyadh and the east coast, and exploring the use of futuristic technologies such as Hyperloop and the new generation of Maglev.

R&D

2020: R&D spending - $12.5 billion

Agriculture

2021: Share of farmland from the country's area - 81%

2019: Average use of pesticides in agriculture

2001: The main model of agriculture is asexual

Tourism

2024: Reduction of tourist flows of Russians to Saudi Arabia by 3 times to 36 thousand trips

In 2024, Russians made more than 36 thousand trips to Saudi Arabia. This was announced in early July 2025 by the press service of the Russian Foreign Ministry. The statement came amid an official visit by Saudi Foreign Minister Faisal bin Farhan Al Saud.

The message of the Russian Foreign Ministry does not specify the dynamics of the tourist flow of Russians to Saudi Arabia. However, earlier TAdviser wrote that in 2023, tourists from Russia visited the kingdom 106 thousand times. Thus, in 2024, the Russian tourist flow to Saudi Arabia almost tripled.

The flow of tourists from Saudi Arabia in Russia increased 6 times, in the opposite direction - decreased three times

At the same time, as reported on the website of the Russian Foreign Ministry, in 2024 the flow of tourists from Saudi Arabia to Russia increased almost 6 times compared to 2023.

I am sure that the further increase in tourist exchanges, and contacts between business circles, and in general contacts between people will be facilitated, firstly, by the opening of direct flights between Saudi Arabia and the Russian Federation, which is scheduled for October this year, - said Russian Foreign Minister Sergei Lavrov following talks with Faisal bin Farhan Al Saud.

Lavrov also noted that by the beginning of July 2025, the agreement on a visa-free regime between Russia and Saudi Arabia is at the final stage of preparation.

According to the press service, in Association of Tour Operators of Russia 2025, Saudi Arabia demonstrated a breakthrough in the segment of inbound tourism in the Russian Federation. The real excitement, albeit from a low base, is observed in Russia in the segment of outbound tourism, the company said PAX as part of the country's presentation in. To Moscow PAX also records a twofold increase in demand for tours to Saudi Arabia in 2025 and explains this by the action of several factors: from the effect of novelty and wide tourist opportunities of the country to a developed tourism infrastructure.^[2]

2023

The growth of tourist flow of Russians doubled to 106 thousand visits

In 2023, tourists from Russia visited Saudi Arabia 106 thousand times - this is twice as much as in 2022, when the number of such trips was 55 thousand. This was announced in March 2024 by RBC with reference to the director of the tourism department of Saudi Arabia Fahd Hamiddadin.

Russian tourists visit Saudi Arabia with two main goals. First, it is a religious pilgrimage to Mecca. The second is recreational tourism for the purpose of recreation. Fahd Hamiddadin especially noted the increase in the flow of tourists who came for the purpose of recreation.

Riyadh, Saudi Arabia

In general, the tourist flow to Saudi Arabia, according to the World Tourism Organization (UNWTO), increased by 12% and amounted to 106.2 million foreign tourists. Saudi Arabia has become the fastest growing number of tourists among the G20 countries.

According to Russian tour operators, there is a "colossal" increase in demand for travel to Saudi Arabia. Popular routes include Riyadh and the city of Jeddah.

The main flow of tourists is aimed at excursion tours, people want to get acquainted with local traditions, immerse themselves in the culture of the Middle East. But, of course, some of the tourists are pilgrims, - they say in the company Tez Tour (quote from RBC).

Saudi Arabia reached its plan for the number of tourists seven years ahead of schedule. Until 2016, the country was one of the most closed in the world, it was possible to get there only on business issues or for pilgrimage to Mecca and Medina. The change in the country's attitude towards tourism came after the Vision 2030 plan presented by Crown Prince Mohammed ibn Salman. In this regard, tourism is noted as one of the important areas of economic diversification for moving away from dependence on oil revenues.

The first tourist visas appeared in Saudi Arabia in 2019. Then visas began to be issued for citizens of 49 countries, including Russia. By 2030, the country plans to increase the flow of tourists to 150 million people a year. The country is actively developing resorts on the shores of the Red Sea, as well as projects of "cities of the future" called Neom. The project is planned to be completed by 2025.^[3]

Introduction of instant electronic visas

In mid-June 2023, Saudi Arabia announced the introduction of an instant electronic visa system as part of efforts to develop the tourism industry in order to diversify the economy.

The instant e-visa system, available on the official www.mofa.gov.sa website, is designed to simplify and speed up the visa process, making it easier for travelers from around the world to get acquainted with what the kingdom has to offer.

According to the Saudi government, holders of British, American and Schengen visas, as well as permanent residents of these and any other EU countries, can now easily obtain a tourist electronic visa to Saudi Arabia.

According to the BBC, the state authorities have set themselves a goal that includes attracting 100 million visitors a year by 2030. The kingdom seeks to entice experienced travellers from these key regions by removing bureaucratic obstacles. This latest decision marks a significant step towards the gradual digitalization and integration of technology into the state's tourism sector with the aim of providing travelers with an easy way to travel in Saudi Arabia. The Saudi Tourism Authority intends to speed up the process of simplifying access routes so that as many travel enthusiasts from around the world as possible can enjoy what this country has prepared for them.

Saudi Arabia has also opened the country's digital platform for religious tourism, called Nusuk. The platform provides opportunities for both pilgrims and visitors, serving as a portal for those who plan sacred journeys to the country's revered places - Mecca and Medina.

Since 2019, Saudi Arabia has seen significant growth in the tourism sector, positioning itself as one of the fastest growing markets in the world. In 2022 alone, 93.5 million people visited the country.^[4]

2018

Real estate

2024: Riyadh apartment prices rise 75% in five years

The Saudi housing market is under pressure from high prices.

The demand for buyers purchasing housing for the first time decreased from 40% in 2023 to 29% in 2024. Prices for apartments in Riyadh rose by 11%, and for villas - by more than 6%.

Rent is becoming more popular, especially among visiting workers and young people, which opens up the potential for the development of the "build for rent" sector.

Consumption

2025: Allowing the sale of alcohol to non-Muslim foreigners with an income of more than $13.3 thousand per month

Saudi Arabia has relaxed the rules for the sale of alcohol, allowing purchases of non-Muslim foreigners with an income of 50,000 riyal ($13,300) per month. Proof of income is required to enter the only alcohol store in Riyadh.

The changes are part of a broader policy to ease social restrictions and make the country a more attractive place for foreign professionals and investment.

2024: Permission to sell alcohol only to foreign diplomats

In January 2024, Saudi Arabia for the first time allowed the sale of alcohol - but only to foreign diplomats. Riyadh breaks with tradition and opens a outlet in the capital that will serve exclusively non-Muslim foreign officials.

2023: Poultry meat is the most consumed type of meat

2019: Poultry meat is the most consumed type of meat

2018: Sale of alcoholic beverages prohibited

See also

• Russian economy
• China's economy

Notes