Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected
Al Mayadeen's correspondent: 14 martyrs arrive at al-Shifa Hospital following Israeli massacre of al-Sultan Family north of Gaza.

Saudi Arabia posts $15.65 billion Q1 deficit as oil revenues fall 18%

  • By Al Mayadeen English
  • Source: Agencies
  • 5 May 2025 19:14
3 Min Read

Despite the oil-related revenue slump, non-oil income edged up by 2% to 113.806 billion riyals, reflecting incremental progress in economic diversification.

Listen
  • x
  •  Fuel trucks line up in front of storage tanks at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia, on March 21, 2021. (AP)
    Fuel trucks line up in front of storage tanks at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia, on March 21, 2021. (AP)

Saudi Arabia reported a sharp increase in its budget deficit for the first quarter of 2025, reaching $15.65 billion, up from $3.3 billion a year earlier, amid falling oil revenues and elevated spending tied to its economic diversification agenda. The Finance Ministry attributed the shortfall to an 18% decline in oil income, which dropped to 149.810 billion riyals ($39.95 billion), and a broader 10% dip in total revenues to 263.616 billion riyals. Government expenditure, meanwhile, rose 5% to 322.317 billion riyals.

The financial strain comes as global oil prices remain under pressure. Brent crude fell over 1% last week to $61.29 per barrel, its lowest level in nearly four years, weighed down by oversupply fears, tepid demand, and uncertainty surrounding US trade policy. These market conditions have directly impacted Saudi revenues, despite efforts by OPEC+ to stabilize prices through coordinated production management.

In April, Riyadh and other OPEC+ members moved to accelerate the rollback of earlier voluntary output cuts. Production increases are set to begin in May, part of a phased restoration of 2.2 million barrels per day by November. The decision follows mounting internal tensions within the alliance, as Saudi Arabia has grown increasingly frustrated with members like Iraq and Kazakhstan over repeated quota violations.

"Saudi Arabia repeated its warnings against poor compliance on Saturday," a source told Reuters, noting Riyadh's insistence on burden-sharing within the bloc. Kazakhstan, in particular, has drawn criticism for exceeding its quota in April and signaling a preference for domestic priorities over OPEC+ commitments.

Related News

Saudi Arabia to reassess spending amid oil slump: Financial Times

Saudi Arabia authorizes foreign property investments in holy cities

Read more: OPEC+ eyes full return of 2.2 million barrels amid compliance rift

These developments reflect the challenges Riyadh faces in maintaining fiscal balance while also preserving its leadership role within OPEC+. With a full-year deficit of 101 billion riyals forecast in the 2025 budget approved last November, the kingdom is relying heavily on debt markets to sustain strategic investments. Public debt climbed to 1.329 trillion riyals in Q1, yet Saudi Arabia retains a low debt-to-GDP ratio and remains one of the most active emerging market issuers globally.

Despite the oil-related revenue slump, non-oil income edged up by 2% to 113.806 billion riyals, reflecting incremental progress in economic diversification. "Boosting non-oil economic growth remains a top government priority," the ministry affirmed, highlighting continued efforts to attract investment into tourism, logistics, and the private sector under the Vision 2030 framework.

Read more: US to offer KSA $100 billion arms deal during Trump visit: Reuters

The shift in oil strategy, from stabilizing prices to reclaiming market share, also suggests a broader recalibration. Analysts warn that unless compliance improves within OPEC+, the full 2.2 million bpd of voluntary cuts could be unwound, potentially introducing further price volatility and complicating Saudi Arabia's fiscal outlook.

With a full OPEC+ ministerial meeting set for May 28, all eyes are on whether Riyadh can secure greater cohesion within the alliance while managing the domestic financial pressures of its ambitious transformation agenda.

  • Vision 2030
  • budget deficit
  • OPEC+
  • oil revenues
  • Saudi Arabia

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS