Despite the deficit .. Saudi Arabia expects to spend 1.31 trillion riyals in 2026

On Tuesday, the Saudi Ministry of Finance issued the preliminary statement of the 2026 budget, expected that the total spending would reach 1.31 trillion riyals (349 billion dollars), while revenues will reach 1.14 trillion riyals (304 billion dollars).

The Ministry expected that the Kingdom would record a financial deficit of 3.3% of GDP in 2026, which is higher than the estimation of deficit in the budget of 2025 of 2.9%. The statement stressed that this trend reflects the government’s continued adoption of expansionary spending policies for the economic cycle, focusing on national priorities with a social and economic impact, in a way that contributes to achieving the targets of Saudi Vision 2030 and diversifying the economic base away from oil. The Ministry of Finance also suggested the real GDP growth by 4.4% in 2025, and 4.6% in 2026, supported by increasing the non -oil activities that It currently contributes 56% of the economy. In the medium term, I expected the revenues to reach about 1.294 trillion riyals in 2028, compared to expenses estimated at 1.419 trillion riyals in the same year, with the continued registration of the deficit but at lower levels than the expected percentage for the year 2026. The statement confirmed that the government will continue funding operations through local and international channels, including the issuance of bonds, sukuk and loans, in addition to expanding the alternative government funding from During the financing of projects and infrastructure through export credit agencies during 2026 and beyond. On his part, Saudi Finance Minister Mohammed bin Abdullah Al -Jadaan stressed that the budget aims to strengthen the financial position of the Kingdom and ensure sustainability, in parallel with support for economic growth. He explained that the percentage of public debt to the gross domestic product is still at relatively low levels compared to other global economies, and supported by large financial reserves that give Saudi financial policies flexibility to deal with crises. Al -Jadaan pointed out that the Kingdom, in light of the continued state of global uncertainty and geopolitical tensions, will continue to monitor risks and proactive planning to confront them. He also affirmed the government’s commitment to supporting development projects and implementing national strategies, and motivating the private sector to be a major partner in development, while preserving the efficiency of spending and achieving a balance between development and financial sustainability. It is worth noting that the International Monetary Fund had raised in June its expectations for the growth of the Saudi economy in 2025 to 3.5%, with the support of government projects and the OPEC+ alliance to gradually reduce oil production.