Saudi Arabia's oil price problem

In the first quarter of 2025, Saudi Arabia reported a budget deficit of $15.7 billion—the highest figure since 2021. A big part of the reason is that Crown Prince Mohammad bin Salman is investing substantial financial resources in Vision 2030, a sweeping, decade-old development initiative designed to diversify the nation’s economy away from hydrocarbons.

However, with slumping oil prices and even higher spending, Saudi Arabia may have to scale back some of its more ambitious investment plans. In April, reports surfaced that the kingdom was drastically cutting its plans for Neom—a $1.5 trillion infrastructure project aimed at constructing a utopian megacity in the desert.

Here’s a look at how global oil prices have stacked up against Saudi Arabia’s fiscal breakeven price—the level needed to balance the state budget—since 2008.

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