Saudi Arabia’s Ministry of Finance has released the Pre-Budget Statement for fiscal year 2026, projecting expenditure of SR1.313 trillion ($350 billion) and revenues of SR1.147 trillion ($305 billion). The plan results in a budget deficit of 3.3% of GDP, while maintaining expansionary fiscal policies to support Saudi Vision 2030.
Growth Driven by Non-Oil Economy
The Kingdom forecasts real GDP growth of 4.6% in 2026, fuelled by non-oil activities that are expected to remain the key driver of diversification. For 2025, GDP growth is projected at 4.4%, supported by a 5% increase in non-oil sectors. Rising domestic demand and record-low unemployment, which dropped to 6.8% in Q2 2025, further highlight the economy’s resilience.
Spending, Revenues, and Fiscal Outlook
Saudi Arabia’s expenditure is expected to rise from SR1.313 trillion ($350 billion) in 2026 to SR1.419 trillion ($377 billion) in 2028, while revenues are forecast to increase from SR1.147 trillion ($305 billion) in 2026 to SR1.294 trillion ($344 billion) in 2028. Although deficits are projected to continue in the medium term, they will remain below the 2026 level, reflecting a balance between expansionary spending and fiscal sustainability.
To finance the budget, the government will continue leveraging local and international funding sources, including bonds, sukuk, and loans. Alternative funding channels such as project finance, infrastructure financing, and export credit agencies will also expand.
Minister of Finance’s Statement
Minister of Finance Mohammed Aljadaan said the 2026 budget is designed to consolidate the Kingdom’s financial strength while sustaining economic growth. He stressed that Saudi Arabia’s public debt-to-GDP ratio remains low and within safe limits, supported by strong financial reserves.
Aljadaan added:
“In light of the continued global uncertainty during 2026 and over the medium term, as a result of the possibility of continued geopolitical tensions and increasing preventive policies, the government continues to monitor and analyse these risks as a key element in enhancing the efficiency of financial planning, and proactively guide policies to address potential global economic challenges and reduce their negative impacts.”
He confirmed that the government will continue investing in development projects and national strategies with targeted spending to deliver economic and social returns while encouraging greater private sector participation.
Commitment to Transparency
The 2026 Pre-Budget Statement marks the eighth consecutive year of Saudi Arabia publishing preliminary fiscal plans. It underscores the Kingdom’s commitment to transparency, fiscal disclosure, and reforms that have strengthened its financial position amid global uncertainty.
