An expected increase in public spending will widen Saudi Arabia’s public debt by around 65 billion Saudi riyals ($17 billion) in 2024, according to a local report.

The debt is projected to climb further in 2025 due to a surge in project and current expenditure as a result of strong oil prices, a report by Jadwa Investments sent to Zawya Projects on Wednesday said.

Jadwa projected actual spending to climb to SAR1,361 billion ($362.9 billion) in 2024 and SAR1,435 billion ($382.6 billion) in 2025.

Saudi Arabia, the largest Arab economy, forecast spending for 2024 at SAR1,251 billion ($333.6 billion) and revenue at SAR1,172 billion ($312.5 billion).

The surge in spending is expected to boost the Kingdom’s public debt from SAR1,050 billion ($280 billion) at the end of 2023 to SAR1,115 billion ($297.3 billion) at the end of 2024 and SAR1,178 billion ($314.2 billion) at the end of 2025, Jadwa said.

(Writing by Nadim Kawach; Editing by Anoop Menon)


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