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The Ministry of Finance said in a statement that Minister Mohammed Aljadaan expressed his appreciation to the Custodian of the Two Holy Mosques and the Crown Prince for their continued support to the Kingdom’s public financial system. Aljadaan stated that the approval of the updated law represents a significant step toward strengthening the governance of government revenues and enhancing their management efficiency in a manner that supports financial sustainability. He further highlighted that the law enables government entities to improve revenue forecasting mechanisms, raise compliance levels in the settlement of dues and regulate collection procedures while addressing government debts with a balanced approach that considers payers’ circumstances.
According to the ministry announcement, the law update forms part of ongoing efforts to develop the financial system, reinforce governance and transparency and keep pace with the economic and administrative transformation under Saudi Vision 2030. The revised law introduces a more structured framework by clearly defining roles and responsibilities across relevant entities. It enhances revenue estimation mechanisms over the medium and long term to support financial planning and improve the reliability of fiscal projections. The legislation also includes measures to regulate payment and installment arrangements under defined controls to strengthen financial discipline.
Saudi Press Agency figures show that non-oil revenue reached 457 billion riyals compared to a baseline of 166 billion riyals. This marks substantial progress toward the Vision 2030 target of 1 trillion riyals in non-oil government revenue. Vision 2030 trackers indicate that non-oil GDP grew by 4.3 percent in 2024 and is projected to expand between 4 and 5 percent annually through 2030. These developments illustrate the increasing importance of effective revenue laws in sustaining the diversification drive.
The statement from the Ministry of Finance described the law as ensuring a balanced approach between efficient collection and consideration of payers’ circumstances. It further noted that the measures would strengthen financial discipline. The provisions support the efficient management of the state’s financial resources. The approval comes as Saudi Arabia continues to advance its fiscal reform agenda to support long-term economic stability.
The cabinet session, which was chaired by Crown Prince Mohammed bin Salman, prioritized this legislative change among other matters. The update to the State Revenues Law reflects years of work to modernize public finance tools in the Kingdom. Aljadaan has repeatedly stressed the value of transparency and improved compliance in revenue collection to achieve national development targets. The law sets out to improve the efficiency of government revenue management by enabling entities to strengthen estimation mechanisms and streamline procedures.
