Saudi Arabia approves 2026 budget with $44 billion deficit

Saudi Arabia approved its 2026 national budget on Tuesday, projecting a deficit of 44.1 billion dollars, as the Kingdom continues to invest heavily in its long-term economic transformation and reduce its dependence on oil revenues.

The deficit, estimated at 165 billion riyals, or 3.3% of GDP, reflects ongoing spending to support the Vision 2030 reform agenda, which aims to expand sectors such as tourism, technology, logistics and green energy.

According to the Ministry of Finance, government expenditures for 2026 are expected to reach 1.313 trillion riyals (about 350 billion dollars), maintaining a relatively stable trajectory. Revenues, however, are forecast to fall to 1.147 trillion riyals, mainly due to weaker oil prices and global market uncertainties.

Despite lower revenues, authorities stressed that spending levels will remain consistent to sustain key national projects, infrastructure development, and economic diversification efforts.

Saudi Arabia has posted several consecutive budget deficits as it channels substantial resources into megaprojects, industrial expansion and social development initiatives — pillars of Crown Prince Mohammed bin Salman’s long-term plan to reshape the Kingdom’s economic landscape.

Officials emphasise that the medium-term fiscal path remains “stable and sustainable,” supported by strong non-oil sector growth and ongoing improvements in public financial management.