Crashing oil prices triggered by waning demand, global trade war fears and growing crude supply could more than double Saudi Arabia’s budget deficit, a Goldman Sachs economist warned.
The bank’s outlook spotlighted the pressure on the kingdom to make changes to its mammoth spending plans and fiscal measures.
“The deficits on the fiscal side that we’re likely to see in the GCC [Gulf Cooperation Council] countries, especially big countries like Saudi Arabia, are going to be pretty significant,” Farouk Soussa, Middle East and North Africa economist at Goldman Sachs, told CNBC’s Access Middle East on Wednesday.
Spending by the kingdom has ballooned due to Vision 2030, a sweeping campaign to transform the Saudi economy and diversify its revenue streams away from hydrocarbons. A centerpiece of the project is Neom, an as-yet sparsely populated mega-region in the desert roughly the size of Massachusetts.
Plans for Neom include hyper-futuristic developments that altogether have been estimated to cost as much as $1.5 trillion. The kingdom is also hosting the 2034 World Cup and the 2030 World Expo, both infamously costly endeavors.
Digital render of NEOM’s The Line project in Saudi Arabia
The Line, NEOM
Saudi Arabia needs oil at more than $90 a barrel to balance its budget, the International Monetary Fund estimates. Goldman Sachs this week lowered its year-end 2025 oil price forecast to $62 a barrel for Brent crude, down from a previous forecast of $69 — a figure that the bank’s economists say could more than double Saudi Arabia’s 2024 budget deficit of $30.8 billion.
“In Saudi Arabia, we estimate that we’re probably going to see the deficit go up from around $30 to $35 billion to around $70 to $75 billion, if oil prices stayed around $62 this year,” Soussa said.
“That means more borrowing, probably means more cutbacks on expenditure, it probably means more selling of assets, all of the above, and this is going to have an impact both on domestic financial conditions and potentially even international.”
Financing that level of deficit in international markets “is going to be challenging” given the shakiness of international markets right now, he added, and likely means Riyadh will need to look at other options to bridge their funding gap.
The kingdom still has significant headroom to borrow; their debt-to-GDP ratio as of December 2024 is just under 30%. In comparison, the U.S. and France’s debt-to-GDP ratios of 124% and 110.6%, respectively. But $75 billion in debt issuance would be difficult for the market to absorb, Soussa noted.
“That debt to GDP ratio, while comforting, doesn’t mean that the Saudis can issue as much debt as they like … they do have to look at other remedies,” he said, adding that those remedies include cutting back on capital expenditure, raising taxes, or selling more of their domestic assets — like state-owned companies Saudi Aramco and Sabic. Several Neom projects may end up on the chopping block, regional economists predict.
Saudi Arabia has an A/A-1 credit rating with a positive outlook from S&P Global Ratings and an A+ rating with a stable outlook from Fitch. That combined with high foreign currency reserves — $410.2 billion as of January, according to CEIC data — puts the kingdom in a comfortable place to manage a deficit.
The kingdom has also rolled out a series of reforms to boost and de-risk foreign investment and diversify revenue streams, which S&P Global said in September “will continue to improve Saudi Arabia’s economic resilience and wealth.”
“So the Saudis have lots of options, the mix of all of these is very difficult to pre-judge, but certainly we’re not looking at some sort of crisis,” Soussa said. “It’s just a question of which options they go for in order to deal with the challenges that they’re facing.”
Global benchmark Brent crude was trading at $63.58 per barrel on Thursday at 9:30 a.m. in London, down roughly 14% year-to-date.
Global mining and construction equipment giant Liebherr recently rolled out its first-ever battery electric crawler excavator, setting a new standard in heavy earth-moving equipment capabilities with low noise levels and zero local emissions.
The company’s official copy is characteristically low-key, with an emphasis on the facts and features instead of hype:
The new model completes the product range of Liebherr crawler excavators produced in Colmar (France). It is particularly quiet and emission-free. It generates the same output as a diesel machine in the same category and is particularly suitable for building sites that require low noise levels and avoiding exhaust gas emissions, such as in cities or underground operating locations.
Despite the lack of excitement in the release copy, there is a lot of excitement about the R 920 G8-E’s innovative new control cab philosophy.
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Liebherr INTUSI controls
Dubbed INTUSI (for INTuitive USer Interface), the system integrates intelligent control logic with advanced machine learning capabilities to give operators a highly customizable interface that can follow them from asset to asset, from wheel loader to excavator to haul truck, dramatically flattening the learning curve for operators on a given job site.
Liebherr says INTUSI improves both operational efficiency and user comfort on Liebherr job sites through the integration of a number of new features. From the press release:
Haptic feedback – vibrations alert the operator to critical conditions—such as reaching dynamic device limits—enhancing situational awareness and speeding up reaction times.
Optical feedback – integrated RGB LEDs on the joystick provide real-time visual cues about device status and servo control, ensuring clear communication without distraction.
Functional safety – control elements with status LEDs allow safe operation of critical functions—without requiring two-handed input—streamlining workflow while maintaining safety standards.
Hand detection – capacitive proximity sensor detects the operator’s hand automatically, enabling seamless activation of controls only when needed.
Display navigation – a mini-joystick embedded in the handle allows for quick and efficient navigation of the display interface, reducing the need to reach for external controls.
Ergonomics – multi-stage handle height adjustment ensures optimal comfort and usability, adapting to different operator preferences and working conditions
In addition to the INTUSI-powered custom cockpit, the new Liebherr R 920 G8-E electric excavator ships with your choice of either a 188 or 282 kWh high capacity li-ion battery, which is capable of 150 kW DC fast charging. Fast enough, in other words, to power up the machine during shift changes, if needed.
Electrek’s Take
R 920 G8-E electric crawler excavator; via Liebherr.
Since then, Fortescue has used the machine to move millions of tons of dirt, and has ordered several more. And, because everything from excavators to loaders to heavy trucks are built to be powertrain agnostic, and manufacturers will often offer the same basic vehicle with Cummins, Detroit Diesel, or Volvo power, so there’s a degree of openness baked into those systems already. Liebherr is just taking that to the next level by installing an electric drive motor in place of an internal combustion engine, and I expect this excavator will be the first of many such machines from the brand.
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Rivian has posted a job listing for a steering engineer, specifically mentioning work on a future steer-by-wire system for the company.
Steer-by-wire is an automotive concept that has been around for a long time, but hasn’t yet reached mass adoption. The idea is to replace (or supplement) mechanical linkages between the steering wheel and the wheels with electronic actuators instead.
There are a number of potential benefits to this, like allowing more customizability or adaptability to a steering system, reducing mechanical complexity, or adding speed-sensitive variable steering ratios.
Although there are also disadvantages, like a reduction in steering feel (although, since most cars are moving to electronic power steering, that was already gone anyway).
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But few cars have implemented steer-by-wire systems, or at least not fully committed to them, given that mechanical steering racks are a relatively solved problem and the general inertia of the car industry which would rather stick with a solution they know than switch to something better (haven’t we here, at this EV publication, heard *that* one before…). There’s also the matter of regulations, which have often been written to require mechanical steering systems, and may need updating to allow for steer by wire.
But, steer by wire made it into mass production with the release of the Tesla Cybertruck. This was big news when Tesla committed to this – at the time, it was the only thing on the road to exclusively use a steer by wire system, though there are other cars with partial steer by wire (for example, mechanical front wheel steering, and steer by wire rear-wheel steering).
But it seems to have opened the floodgates, as a number of other companies are working on or have since released steer by wire systems (Lexus, for example).
And now, it looks like Rivian is one of those companies – though we don’t know if it’s for the front or rear.
So – we know they’re working on steer by wire, to some extent.
But a few other EVs, particularly large EVs like the Rivian R1 platform is, use steer by wire just for the rear wheels – for example the Hummer EV and Rolls-Royce Spectre. These systems are particularly helpful for giant vehicles, because it allows them to be more nimble and make turns that otherwise would require a lot more… negotiation in a giant land yacht.
So it’s possible that Rivian is only working on rear wheel steer by wire here, but we’d like to think there’s a chance it’s working on steer by wire for the full vehicle.
We also don’t know if this would show up on all of Rivian’s vehicles, or only on certain models – the R2 and R3 are in development, and the R1 just got a big refresh. But, perhaps even more interestingly (and very speculatively), VW has invested heavily in Rivian for technology help, so we wonder if we might end up seeing this in VW group vehicles, or Scout vehicles eventually…
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Hyundai’s electric sports car just got a whole lot cheaper. The 2025 Hyundai IONIQ 5 N now costs $150 less per month to lease after another unexpected price cut.
How much is it to lease the 2025 Hyundai IONIQ 5 N?
The new and improved 2025 IONIQ 5 is coming off its best US sales month yet in July, but that isn’t stopping Hyundai from wanting more.
After Hyundai cut lease prices on all trims last month to as low as $179 per month, it’s now offering even more savings.
The 2025 Hyundai IONIQ 5 N is now listed for lease at just $549 per month. The offer is for 36 months, with $3,999 due at signing. At an effective monthly rate of $660, Hyundai’s EV is $150 cheaper a month than it was in July.
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Hyundai is currently offering some of the best deals on electric cars, with the 2025 IONIQ 5 SE Standard Range listed for lease at just $179 per month.
2025 Hyundai IONIQ 5 at a Tesla Supercharger (Source: Hyundai)
The Standard Range model has a driving range of 245 miles. If you’re looking for more, the Extended Range SE, with a range of 318 miles, is available to lease from $199 per month.
You can even lease the rugged new XRT trim right now for under $300 a month. All deals are for 24 months with $3,999 due at signing and end on September 2
2025 Hyundai IONIQ 5 Trim
EV Powertrain
Driving Range (miles)
Starting Price*
Monthly lease price July 2025
IONIQ 5 SE RWD Standard Range
168-horsepower rear motor
245
$42,500
$179
IONIQ 5 SE RWD
225-horsepower rear motor
318
$46,550
$199
IONIQ 5 SEL RWD
225-horsepower rear motor
318
$49,500
$209
IONIQ 5 Limited RWD
225-horsepower rear motor
318
$54,200
$309
IONIQ 5 SE Dual Motor AWD
320-horsepower dual motor
290
$50,050
$249
IONIQ 5 SEL Dual Motor AWD
320-horsepower dual motor
290
$53,000
$259
IONIQ 5 XRT Dual Motor AWD
320 horsepower dual motor
259
$55,400
$359
IONIQ 5 Limited Dual Motor AWD
320-horsepower dual motor
269
$58,100
$299
IONIQ 5 N Dual Motor AWD
Up to 601-horsepower dual motor
221
$66,200
$549
2025 Hyundai IONIQ 5 price, range, and lease price
With the $7,500 EV tax set to expire at the end of September, Hyundai is offering savings across its entire electric car lineup.
Even Hyundai’s new three-row electric SUV is surprisingly affordable. The 2026 INIQ 9 is listed with monthly lease prices as low as $419 per month.