Forecast buttresses earlier statements that some banner construction projects may be slowed down because of missed revenue targets
Saudi Arabia is slipping deeper into deficit spending mode amid slowing growth in revenue from international investment and cutbacks in oil production.
Finance Ministry figures released on Monday show the kingdom’s 2024 deficit growing by almost 50% to $32 billion from projections made last December and reaching 2.9% of GDP.
The forecast buttresses earlier government statements that some of the banner construction projects it plans will have to be slowed down because of revenue shortfalls.
Saudi Arabia is having trouble meeting its goals for foreign direct investment, which at $9.7 billion was roughly the same in the first six months of 2024 as in the same period last year.
The government has set a target of $100 billion in FDI annually by 2030, about three times more than its previous high.