RIYADH: Saudi Arabia has approved its 2026 budget with an estimated deficit of 165 billion riyals ($44 billion), the state news agency reported on Tuesday. Total spending is set at 1.31 trillion riyals, while revenues are projected at 1.15 trillion riyals. The deficit represents 3.3% of GDP, an improvement from 2025’s estimated 245 billion riyals, or 5.3% of GDP.
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The budget comes as Saudi Arabia continues its Vision 2030 economic transformation, launched in 2016 by Crown Prince Mohammed bin Salman. The initiative aims to reduce the kingdom’s dependence on oil revenues by boosting non-oil sectors and strengthening the private sector. Following the budget approval, the Crown Prince highlighted progress in diversifying the economy and promoting private sector growth.
Finance Minister Mohammed al-Jadaan said the current deficit is “a policy choice,” emphasizing the need for investment in the economy. He noted that as long as the returns from these investments exceed the cost of debt, the government will maintain its strategy to support growth and economic transformation.
Saudi Arabia remains heavily reliant on petroleum exports, though officials are investing billions to attract investment and tourism. The budget will be closely watched by energy analysts, as oil revenues continue to influence fiscal planning. Crude prices have remained in the $60–$70 per barrel range, affected by global market uncertainty and supply fluctuations, including US sanctions on Russian energy companies.
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The 2026 budget reflects Saudi Arabia’s ongoing efforts to balance fiscal responsibility with ambitious economic diversification, while navigating a volatile global energy market.