Saudi Arabia Projects $44 Billion Budget Deficit for 2026

Saudi Arabia has unveiled its 2026 national budget, forecasting a deficit of around 165 billion riyals (US$44 billion) as the Kingdom continues to channel spending into economic diversification and strategic development projects. According to government projections, total revenues for 2026 are expected to reach approximately 1.147 trillion riyals, while expenditures are set at about 1.313 trillion riyals, resulting in the planned shortfall.

Officials noted that the deficit is part of a deliberate fiscal strategy rather than a sign of financial strain, reflecting the government’s focus on sustaining momentum in priority sectors under the Vision 2030 transformation program. Spending is expected to be directed toward areas such as technology, logistics, infrastructure, tourism, and industrial development, supporting the Kingdom’s long-term aim of reducing reliance on oil revenues.

The 2026 deficit projection marks a significant narrowing from the estimated 245 billion riyal shortfall in 2025, signaling gradual fiscal consolidation as non-oil economic activity strengthens. Authorities expect real GDP growth to reach about 4.6% in 2026, driven largely by expansion in non-oil sectors and ongoing reforms designed to boost private-sector participation.

Despite the planned deficit, Saudi Arabia maintains comfortable fiscal buffers, enabling continued investment in major development projects. Officials emphasized that the budget reflects a balance between growth investments and fiscal sustainability, even as global oil markets remain unpredictable.