Saudi Arabia’s Ministry of Finance announced the Kingdom’s 2022 budget statement on the 12th of December 2021. This report is part of Strategic Gears’ commitment to highlighting key insights from Saudi Arabia’s annual budget announcements.

We review 2021’s economic and fiscal performance for the Kingdom and focus on the key highlights of the 2022 budget, its macro assumptions and the overall economic and fiscal outlook for 2022, as well as key medium-term priorities.

The 2022 budget statement highlights the government’s intent to continue to focus on fiscal sustainability. In the medium term, the Kingdom’s fiscal consolidation plans will be realised through a combination of prudent spending, and higher oil and non-oil revenues. As oil prices and production rebound, the Kingdom is aiming for its first budget surplus in eight years. Medium-term priorities will continue to focus on the Vision 2030 Realization Programs, fiscal sustainability and sustaining economic growth levels, maintaining social spending and welfare of citizens, investments in megaprojects and supporting the private sector.