Saudi Arabia: Saudi Arabia’s Finance Minister Mohammed Al-Jadaan has reiterated the Kingdom’s commitment to financing strategic, productive investments rather than resorting to tax increases or fiscal austerity. 

Speaking during a discussion hosted by the Atlantic Council on the sidelines of the 2025 annual meetings of the International Monetary Fund and the World Bank in Washington D.C., Al-Jadaan said Saudi Arabia borrows to fund strategic, productive programs that create investment and employment opportunities.  

He emphasized that borrowing supports development priorities in tourism, industry, technology, and logistics, according to a report by Asharq. 

Al-Jadaan’s comments reflect growing international confidence in Saudi Arabia’s economic outlook, underscored by the IMF’s latest upgrade of the Kingdom’s growth forecast to 4 percent for both 2025 and 2026.  

“We have no intention of increasing the tax burden on the economy,” Al-Jadaan said, adding that the Kingdom’s objective is to expand the overall size of the economy, thereby generating higher revenues through growth.

Al-Jadaan also highlighted the country’s economic momentum, noting that non-oil activities expanded 4.8 percent in the first half of 2025, contributing more than half of Saudi Arabia’s GDP.  

“If you can generate non-oil growth of 4.8 percent with a borrowing cost lower than that, then you are on the right path,” Al-Jadaan said, adding that such policies ensure “returns for the current generation and future ones.”  

He noted that Saudi Arabia maintains one of the lowest debt-to-gross domestic product ratios among G20 nations and ruled out the possibility of that ratio approaching 50 percent, citing the country’s disciplined fiscal policy. 

In its latest report, the IMF said the stronger outlook is driven by robust non-oil expansion and continued investment momentum, in line with Vision 2030 objectives to diversify the economy. 

The revision brings the IMF’s expectations closer to those of the World Bank and the Organization for Economic Cooperation and Development, which also project sustained acceleration in Saudi growth over the coming years. 

Al-Jadaan underlined that national spending is guided by Crown Prince Mohammed bin Salman’s directive that public interest remains the ultimate benchmark for all economic programs. 

“The Crown Prince’s message was clear — we must avoid any pride over projects we undertake. If a project no longer makes sense, we will not hesitate to change it, suspend it, or extend it,” he said. 

Contrary to speculation about scaled-back spending, he stressed: “Saudi Arabia continues to spend generously on tourism, industry, technology, and artificial intelligence.” 

Al-Jadaan added that some projects have been accelerated, particularly in logistics, to support the rapid growth of tourism and manufacturing.  

He revealed that the Public Investment Fund has completed a comprehensive portfolio review and will announce its updated strategy soon. 

The minister described the current budget deficit as “intentional,” reflecting the government’s choice to invest in diversifying the economy.