The Saudi Ministry of Finance has expressed approval of the Concluding Statement issued by International Monetary Fund (IMF) experts after their visit for the 2025 Article IV Consultation discussions. The statement acknowledged the resilience of Saudi Arabia’s economy amid global economic challenges, crediting this to non-oil sector growth, inflation control, and a historically low unemployment rate, all in line with Saudi Vision 2030 objectives.
IMF experts commended the government’s efforts to enhance public finance sustainability and resilience against shocks. They noted that robust domestic demand continues to fuel economic growth despite global uncertainties, reflecting ongoing Vision 2030 projects supported by both public and private investments. This growth is bolstered by strong credit expansion.
The statement highlighted Saudi Arabia’s success in controlling inflation, which rose slightly to 2.3% in April 2025 but is expected to stabilize around 2%. Factors supporting this include the continued peg of the Saudi riyal to the US dollar, domestic government support, reduced transportation and communication costs, and slower residential rent inflation. Imported inflation due to rising global tariffs is also anticipated to remain manageable.
IMF experts praised the Saudi Central Bank (SAMA) for enhancing its liquidity management framework and strengthening regulatory and supervisory frameworks. The bank’s ongoing efforts aim to improve oversight effectiveness.
The statement reviewed national reforms since 2016, affirming wide-ranging changes in business regulation, governance, labor, and capital markets. New regulations effective in 2025 include an updated investment law, labor law amendments, and a new commercial registration system. These reforms are expected to boost investor confidence and productivity while emphasizing continued structural reforms for sustained non-oil sector growth and economic diversification.
The importance of strengthening the fiscal framework was emphasized as crucial for public finance sustainability and achieving Vision 2030 goals. Enhancing the medium-term fiscal framework was highlighted as a priority.
The Concluding Statement from the Article IV Consultation presents preliminary findings from IMF experts at mission end. These missions are part of annual consultations under Article IV of the IMF’s Articles of Agreement or broader surveillance discussions on economic developments.
