��������

RIYADH: In today’s fashion world, the choice of fabric goes beyond just looking good or feeling comfortable. 

It has become a significant factor in discussions about cost, sustainability, and environmental responsibility, particularly in ��������, where the textile industry is evolving rapidly. 

As awareness of climate change and waste issues grows, the debate between synthetic and organic fabrics intensifies. 

Understanding the differences between materials like cotton and polyester reveals important trade-offs between price, environmental impact, and performance.

Hassan Al-Ghaith, owner of Bin Ghaith Textiles in Riyadh, reflects on the legacy of his family’s fabric business, which has thrived for three generations. “My passion is textiles and the history of textiles before the revolution,” he says. 

His commitment to organic fibers stems from a deep appreciation for the past. “I like the organic type of fibers. I collect them and produce old clothes for use, not to be put in museums.”

In Saudi culture, traditional garments often use organic materials, reinforcing a connection to heritage. Al-Ghaith’s fascination with these textiles is rooted in a desire to understand fashion’s history, particularly before the advent of synthetic materials. 

“I am interested in the old fashion of fiber, which is organic linen, cotton, silk, wool, and leather,” he explains. This passion fuels his belief that the synthetic revolution has led to disposable clothing, diminishing the value of traditional craftsmanship.

Among the derivatives of petroleum are materials that were unknown to ancestors, including synthetic fibers produced through oil refining. 

These have transformed the textile world and now make up a substantial portion of the clothing industry, especially in menswear and medical garments. 

The first plastic known to humanity was celluloid, discovered in 1889, and used to make cinema film. These materials are cheaper than silk and cotton, more durable, and easier to use. 

The first synthetic fibers discovered were nylon, followed by polyester and acrylic. Advanced types are not easily flammable and are water-resistant, making them suitable for professionals like firefighters.

From a pricing perspective, synthetic fabrics generally dominate. Polyester, a leading synthetic fiber, costs between $1 to $3 per yard, compared to organic cotton, which ranges from $6 to $12 while synthetic options like nylon are affordable, they obscure hidden environmental costs. 

The Saudi Standards, Metrology and Quality Organization emphasizes the importance of regulating synthetic textiles to ensure they meet health and environmental standards.

��������’s growing focus on sustainability aligns with its Vision 2030 initiative, which aims to diversify the economy and promote eco-friendly practices. This shift has led to increased interest in organic and sustainable fabrics among local designers and consumers alike.

Water usage presents another crucial factor in fabric sustainability, especially in a country where water scarcity is a pressing concern. Organic cotton, though natural, is notoriously water-intensive; producing just one kilogram requires up to 10,000 liters. 

In contrast, polyester’s production demands only 25 to 30 liters per kilogram, yet it generates significant pollution. Rayon, derived from wood pulp, introduces complexities due to toxic chemicals involved in its processing.

The long-term environmental consequences of synthetic fabrics are troubling. Polyester and nylon are non-biodegradable, lingering in landfills for centuries. They also release microplastics into waterways with every wash, affecting marine ecosystems and entering the food chain. 

Al-Ghaith acknowledges the darker side of modern textiles: “Textile waste is the most wasted thing for the environment.”

From a lifecycle perspective, synthetic fabrics often boast greater durability, particularly for activewear. “You can wash it hundreds of times and still it’s like new,” Al-Ghaith states. 

However, this durability comes at a cost. While organic fabrics biodegrade faster, they may wear down more quickly, posing their own sustainability challenges.

Certifications like the Global Organic Textile Standard help ensure that organic fabrics meet environmental and social criteria throughout their lifecycle. In ��������, there is a growing push for local certifications promoting sustainable practices in the textile industry.

The textile industry has responded to the demand for performance and sustainability with hybrid fabrics. Blends like cotton-polyester provide advantages in comfort and strength but complicate the recycling process since separating blended fibers is often economically unfeasible. 

Al-Ghaith said that “the modern way of the industry of the fabrics is so advanced that you cannot feel the difference,” highlighting the complexity of consumer choices today.

Consumer behaviors in �������� are shifting, with many seeking to return to traditional fabrics. “Now they are turning back to their roots,” Al-Ghaith observes, referring to a growing appreciation for organic materials.

This trend is echoed by Amwaj Al-Sultan, owner of Waves Area 1, a brand dedicated to non-polyester fabrics. “I got bored from polyester and started making my own pieces,” she explains. Her brand focuses on home robes and feminine dresses, all polyester-free.

Ultimately, the choice between synthetic and organic fabrics is not straightforward. While synthetic fibers offer lower costs and enhanced durability, the long-term environmental implications are profound. Organic materials support natural degradation but often require substantial resources. The emergence of hybrid fabrics aims to bridge the gap, yet it introduces its own sustainability dilemmas.

As the textile industry evolves, conscious choices and responsible production practices will be vital. Whether it is a cotton shirt or a polyester jacket, clothing should reflect values and an understanding of environmental stewardship within ��������’s evolving textile landscape.

RIYADH: ��������’s non-oil revenues rose by 6.6 percent in the second quarter of 2025 compared to the same period of last year, reaching SR149.86 billion ($39.96 billion).

According to data from the Ministry of Finance’s quarterly budget performance report, this marks a key fiscal milestone, with non-oil revenues now accounting for 49.7 percent of total government income, up from less than 40 percent a year ago.

Oil income fell by 28.76 percent during this period, totaling SR151.73 billion compared to SR213 billion a year earlier. This pulled total government revenues down by 15 percent annually to SR301.6 billion.

The shift reflects two main drivers: the Kingdom’s economic diversification push under Vision 2030, and the voluntary oil production cuts implemented under OPEC+ agreements in late 2023 to stabilize global prices.

These cuts, initially amounting to 1 million barrels per day, have been unwound in gradual phases throughout 2025, with output increases of 138,000 bpd in April, followed by 411,000 bpd increments in May and June.

Production is on track to return to pre-cut levels by September, earlier than initially planned, as the nation seeks to balance market stability with reclaiming market share.

For the first half of 2025, the Kingdom’s revenues stood at 47.74 percent of the year’s budgeted target, signaling alignment with fiscal planning.

What drove non-oil revenue growth?

The largest contributor to non-oil income was taxes on goods and services, which accounted for 50 percent of the total, or SR 74.95 billion.

“Other revenues” followed with a 19.26 percent share or SR28.9 billion, encompassing earnings from government entities, including the Saudi Central Bank, administrative fees, and port service charges, as well as advertising income, and fines.

Other taxes, primarily corporate zakat, totaled SR26 billion, while income, profit, and capital gains taxes generated SR13.73 billion. Taxes on international trade and transactions added SR6.32 billion.

Much of this growth is linked to robust activity in non-hydrocarbon sectors.

��������’s General Authority of Statistics had reported that the Kingdom’s gross domestic product grew by 3.4 percent year on year in the first quarter, driven primarily by a 4.9 percent expansion in non-oil transactions while oil activities contracted by 0.5 percent.

The strongest gains came from wholesale and retail trade, restaurants and hotel sector, which grew by 8.4 percent, transport and communications by 6 percent, and finance and business services by 5.5 percent.

This robust non-oil sector performance, reinforced by tourism, entertainment, technology, and manufacturing growth under Vision 2030, has translated into higher consumption taxes, service fees, and other government income streams, helping to further lift non-oil revenues in the second quarter budget performance report, even as oil revenues declined year on year.

Expenditure trends and fiscal priorities

Government expenditures in the second quarter fell 8.9 percent year on year to SR336.13 billion. The largest outlay was compensation to employees, which rose 0.4 percent to SR140.40 billion, representing 41.77 percent of total spending.

Expenditure on goods and services came second, at SR73.58 billion, with a 22 percent share. 

Non-financial assets or capital expenditure reached SR39.9 billion but fell sharply, nearly 39 percent year on year.

Social benefits totaled SR39.2 billion, down 0.1 percent year on year, while “other expenditures” declined 5 percent to SR23 billion.

According to the Ministry data, total expenditure for the first half of 2025 reached 51.24 percent of the annual budget forecast, in line with fiscal planning.

Deficit financing and debt profile

The second quarter closed with a budget deficit of SR34.53 billion, which, while 41 percent lower than the first quarter deficit, is 125.11 percent higher than the same quarter last year.

This increase was expected, as government spending is accelerating in the mid-cycle of Vision 2030 initiatives, particularly in infrastructure and mega-project execution phases.

For the first half of 2025, the deficit totaled SR93.23 billion, fully funded through borrowings, according to the ministry.

End-of-period public debt reached SR1.39 trillion, up 14.1 percent annually, with 62.84 percent classified as domestic and 37.16 percent external.

Outlook

With non-oil revenues approaching parity with oil income, ��������’s fiscal structure is becoming increasingly resilient to energy price volatility.

Strong tax-based revenues, stable expenditure management, and the phased restoration of oil production position the Kingdom to maintain momentum in funding its Vision 2030 transformation agenda.

Continued expansion in tourism, logistics, finance, and manufacturing is expected to further solidify this trajectory in the second half of the year.

The International Monetary Fund’s 2025 Article IV Consultation reported that ��������’s non-oil real GDP grew 4.5 percent in 2024, driven by strong performance in retail, hospitality, and construction.

Growth in the non-oil economy is projected to reach 3.4 percent in 2025, supported by robust domestic demand fueled by government-led Vision 2030 projects and solid credit expansion, even amid softer commodity prices.

While lower oil revenues and investment-related imports have resulted in the emergence of twin deficits, the IMF noted that the Kingdom continues to maintain ample external and fiscal buffers.

Overall, real GDP is expected to rise 3.6 percent in 2025, aided by the gradual reversal of OPEC+ production cuts, with oil output forecast to reach 9.5 million barrels per day in July and continue increasing thereafter.

The fiscal deficit is anticipated to peak at 4 percent of GDP in 2025 before narrowing to around 3.2 percent by 2030, with borrowing expected to be the primary financing source.

Public debt-to-GDP is projected to remain moderate, at 40.6 percent by the end of the decade, which will remain consistent with a low sovereign debt risk according to the IMF.