Oil revenue funds the state
Oil revenue supplied more than half of government revenue in 2025. The state holds most of the national oil company directly, and shares transferred between 2022 and 2024 give the sovereign fund and its companies a further holding. The size of that revenue moves with the oil price and export volumes.
Where demand comes from
Non-oil activity in 2025 was driven by domestic demand. In the same year, government capital spending moderated and came in below budget, while total spending exceeded it. The sovereign fund's strategy for 2026 to 2030 sets increasing private sector participation among its aims.
How capital moves from oil revenue into the economy
Capital circulates from the anchor through the state. Oil revenue enters the budget, and the state funds the sovereign fund through capital injections and asset transfers. Both convert capital into domestic projects, and the fund's domestic portfolio covers six ecosystems, NEOM among them. Taxes on goods and services return part of that circulation to the state. Where the budget runs a deficit, borrowing in domestic and international markets covers it.