Ƶ’s key economic achievements in 2024 
Despite the global economic turmoil caused by rising interest rates, inflation, political unrest, and fluctuations in oil prices, the Kingdom’s economy achieved remarkable results in 2024.
The average price of Brent Crude Futures slightly decreased by 0.3 percent from the beginning of 2024 to the end of September, reaching approximately $81.8 per barrel compared to $82.1 per barrel during the same in 2023.
In September 2024, Brent Crude Futures prices dropped further, reaching approximately $73 per barrel.
The Kingdom’s average oil supply remained steady at 9 million barrels per day from the beginning of 2024 to the end of September, marking a decline of 0.9 million barrels per day compared to the same period in 2023.
This reduction was driven by the Kingdom’s voluntary production cut and efforts made under the OPEC+ agreement to support market stability, benefiting both producers and consumers.
The Saudi government continued its expansionary budget strategy in 2024, focusing on the medium term.
The Ministry of Finance released the preliminary actual results for the 2024 budget, indicating that total spending is projected to reach $358.7 billion, representing an increase of 7.5 percent over the originally approved budget figure of $333.6 billion.
This increase is attributed to the government’s continued funding of sectoral and regional strategies, major projects, public services, and Saudi Vision 2030 programs.
In contrast, total revenues are projected to reach $328 billion, representing an increase of 4.9 percent over the originally approved budget figure of $312.5 billion.
This rise is driven by growth in non-oil revenues, private investments, private consumption, and credit to the private sector, which increased by 4.2 percent, 4.5 percent, 2.4 percent, and 11.7 percent, respectively.
The remarkable economic progress in 2024 has garnered positive international recognition, including from the IMF and credit rating agencies.
The budget deficit is projected to reach $30.7 billion in 2024, compared to $26.9 billion in 2023, representing an increase of 13.9 percent and accounting for 2.8 percent of the Kingdom’s gross domestic product.
Ƶ’s real GDP is projected to grow by 0.8 percent in 2024, following a contraction of 0.8 percent in 2023.
The Kingdom’s nominal GDP is expected to amount to $1.091 trillion in 2024, compared to $1.0675 trillion in 2023, representing an increase of 2.2 percent.
The inflation rate dropped to 1.5 percent in July 2024, compared to 2.3 percent in the same month of 2023. This decline is attributed to government policies aimed at stabilizing prices, including subsidies and price controls.
Public debt is projected to reach $319.7 billion in 2024, compared to the budgeted figure of $294.1 billion, representing 29.3 percent of the Kingdom’s GDP.
The General Authority for Statistics reported that the unemployment rate among Saudi nationals reached a historical low of 7.1 percent in Q2 2024, compared to 12.5 percent in 2016.
Saudi women’s participation in the labor market increased to 35.4 percent in Q2 2024, compared to 19.4 percent in 2016.
These remarkable economic achievements in 2024 were supported by the significant fiscal and economic progress made in recent years.
They were also driven by the government’s efforts to realize the objectives of Saudi Vision 2030, focusing on implementing comprehensive fiscal and structural reforms aimed at diversifying the Kingdom’s economy away from reliance on oil as the main source of national income.
The remarkable economic progress in 2024 has garnered positive international recognition, including from the IMF and credit rating agencies.
S&P Global Ratings affirmed its foreign and local currency sovereign credit ratings for Ƶ at “A/A-1” with a Stable Outlook, while Fitch affirmed its rating at “A+” with a Stable Outlook, and Moody’s rated it at “Aa3” with a Stable Outlook.
The Saudi economy is expected to achieve sustainable growth in 2025, particularly in non-oil activities, which I will address in an upcoming article.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
