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RIYADH: ������Ƶ’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 ������Ƶ 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 ������Ƶ’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 ������Ƶ’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 ������Ƶ 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: “������Ƶ 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.  

Al-Jadaan emphasized the importance of prudent borrowing, noting that when debt is directed toward productive areas such as infrastructure, connectivity, and human capital, it transforms into long-term wealth for future generations instead of becoming a financial burden.

RIYADH: ������Ƶ’s consumer prices dipped 0.1 percent in September from the previous month, signaling continued economic stability as the Kingdom maintains moderate inflationary pressure. 

According to the General Authority for Statistics, the monthly decline was mainly driven by lower transport costs, along with decreases in restaurant and accommodation services, furnishings, and communication prices. 

This helped ������Ƶ’s annual inflation rate stand at 2.2 percent in September, driven primarily by rising housing and water costs.

This is in line with the International Monetary Fund’s latest World Economic Outlook report, which projects that the Kingdom will maintain an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026. 

In its latest report, GASTAT stated: “On a monthly basis, the CPI decreased comparatively by 0.1 percent in September 2025 compared to August 2025. The transport division decreased by 0.4 percent, mainly due to a 1.4 percent decrease in passenger transport.” 

It added: “Restaurant and accommodation services division decreased by 0.9 percent.” 

The agency added that prices of furniture and home appliances, periodic home maintenance, and entertainment and culture all declined 0.3 percent, as did the cost of clothing and footwear, and insurance and financial services. 

Prices in the information and communications and health divisions edged down 0.1 percent. 

The report, however, noted increases in housing, water, electricity, gas and other fuels with 0.4 percent, food and beverages with 0.1 percent, and personal goods and services with 0.4 percent, compared to the previous month. 

Prices of education saw an increase of 0.3 percent, while tobacco division products showed a 0.1 percent increase in September. 

Annual inflation 

������Ƶ’s annual inflation rate of 2.2 percent is broadly in line with the August figure, supported by steady gains of 5.2 percent in housing and utility costs, offset by declines in transport and hospitality prices.  

Rents paid for housing saw an increase of 6.7 percent, with actual rents paid by tenants for primary residences rising by 6.7 percent. This category’s substantial weight in the overall index had a considerable impact on the inflation rate. 

In March, Crown Prince Mohammed bin Salman ordered measures to stabilize Riyadh’s real estate market amid rising costs. This led to new regulations enacted in September, imposing a five-year freeze on all residential and commercial rent increases within the city, effective Sept. 25. 

Food and beverage prices also saw an increase of 1.1 percent, influenced by a 0.6 percent rise in meat prices. The prices of restaurants and hotels rose by 1.5 percent, driven by a 1.9 percent increase in accommodation services. 

“Prices in the personal care, social protection, and other goods and services division increased by 5.4 percent, driven by a 16.3 percent rise in the prices of other personal effects,” the report added. 

The transport division prices rose by 1.6 percent, influenced by a 6.9 percent increase in passenger transport prices, and the prices of the insurance and financial services division also increased by 7.7 percent, driven by a 12.7 percent rise in the prices of the insurance group. 

Conversely, the prices of furnishing and home equipment decreased by 0.6 percent, driven by a 3.2 percent decline in furniture, carpets, and flooring prices. 

Similarly, the information and communication division prices recorded a decrease of 0.4 percent, due to a 6.4 percent decline in the prices of information and communication equipment. 

Wholesale price index 

In another report, GASTAT revealed that the Wholesale Price Index increased by 2.1 percent in September compared to the same month of the previous year. 

This increase was mainly driven by a 4 percent rise in the prices of transportable goods and a 4.7 percent increase in agriculture and fishery products. 

On a monthly basis, the WPI increased by 0.3 percent in September compared to August, attributed to a 0.7 percent rise in prices of metal products and machinery, driven by a 5.3 percent increase in basic chemicals, and a 1.5 percent rise in furniture and other transportable products. 

The prices of metal products, machinery and equipment increased by 0.1 percent, driven by a 0.3 percent uptick of basic metals and a 0.3 percent increase in equipment transport.

In a month-on-month comparison, the prices of ores and minerals, food and beverages, and tobacco, as well as textiles, saw no significant changes during the month. 

Average prices of goods and services 

In a separate bulletin from the GASTAT, notable shifts in the average prices of goods and services across ������Ƶ for September were revealed. 

Local tomatoes saw the highest month-on-month increase at 27.1 percent, followed by green beans at 17.8 percent, local zucchini at 16.2 percent, local okra at 15.1 percent, and green local peppers at 12.4 percent. 

Conversely, several items experienced significant price drops during the same period. Furnished apartments saw the highest decrease at 9.2 percent, followed by Indian pomegranates at 7.5 percent,  and hotel accommodation at 5.8 percent.