Economics
Saudi Arabia Sets ‘Deficit by Design’ Policy for Economic Growth
- Kingdom is prepared to run budget deficits to boost non-oil
- Ex-crude economy now contributes more to Saudi Arabia GDP
Saudi Arabia has taken on investment commitments to fund Crown Prince Mohammed bin Salman’s Vision 2030 agenda.
Photographer: Nathan Howard/AFP/Getty ImagesThis article is for subscribers only.
Saudi Arabia is expecting to run budget deficits in coming years as a trade off for investing in ways to secure long-term benefits for the non-oil sector.
The energy-rich kingdom is forecasting a fiscal deficit of about 2.8% of gross domestic product this year, and hasn’t given guidance for a return to positive territory. At the same time, the country has taken on massive investment commitments to fund Crown Prince Mohammed bin Salman’s Vision 2030 agenda to diversify the economy away from crude.