The Saudi Ministry of Finance has released the final budget statement for fiscal year 2026, forecasting total expenditures at SAR 1,313 billion and revenues at SAR 1,147 billion. This results in an estimated deficit of SAR 165 billion, or about 3.3% of GDP.
The statement details revenue sources and expenditure allocations for FY2026, reviews government sector achievements in FY2025, and sets out targets for the coming year. It also highlights ongoing fiscal and economic developments in Saudi Arabia that support the objectives of Vision 2030. The Ministry notes continued growth in non-oil activities and a focus on spending efficiency and fiscal sustainability over the medium to long term.
Minister of Finance Mohammed Aljadaan expressed gratitude to national leadership for their support: “His Excellency the Saudi Minister of Finance, Mr. Mohammed Aljadaan, expressed his sincere gratitude to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince for their generous support, wise guidance, and diligent oversight that continue to drive prosperity for the Saudi economy and support the success of fiscal policies, ensuring optimal economic and social returns through the best utilization of the Kingdom’s resources and strengths. He emphasized that citizens remain at the forefront of these efforts, with policies designed to meet their basic needs and enhance their quality of life.”
Aljadaan stated that economic transformation is ongoing: “He affirmed that the economic transformation journey continues towards greater diversification, innovation, and the investment in promising sectors, noting that the results achieved so far confirm the success of the economic and fiscal reforms aimed at fostering inclusive growth and enhancing public finance management, with a focus on improving the quality of services provided to citizens, residents, and visitors.”
He reiterated commitment to key sectors: “Minister Aljadaan stressed that the government is steadfast in its approach toward caring for citizens and their basic needs, as spending continues in the education, health, and social services sectors. Meanwhile, programs and projects continue to increase the quality of services, government facilities, and infrastructure development in various regions of the Kingdom, which contributes to improvements in the quality of life.”
Aljadaan also addressed changes in sectoral spending: “Minister Aljadaan highlighted that there is a constant focus on improving the social support and subsidies system while increasing its effectiveness and tangible, measurable impact. He also noted that the decline in spending on some sectors as reflected in the FY2025 and FY2026 estimates is due to completion of a number of projects in some sectors; improvement in efficiency of operating expenses; and presence of non-recurring 2024 expenses for some sectors.”
On medium-term planning aligned with Vision 2030 goals: “In addition, Minister Aljadaan affirmed that the Kingdom’s medium-term financial planning process supports the third phase of Vision 2030 which focuses on maximizing impact. He pointed out that the FY2026 Budget confirms continuation of strategic spending on development projects according to sectoral strategies under Vision 2030.” The budget prioritizes economic diversification initiatives as well as private sector investment expansion.
Managing debt remains a priority: “Minister Aljadaan also reiterated that one of government’s key priorities is managing fiscal deficit and implementing strategies for sustainable debt management,” he said. Public debt is projected at SAR 1,457 billion (31.7% GDP) by end-2025 rising to SAR 1,622 billion (32.7% GDP) by end-2026 but remains within sustainable levels compared internationally.
Government reserves held by SAMA are expected around SAR 390 billion by end-2026—stable compared with previous years—to bolster resilience against external shocks.
Economic reforms have improved indicators according to Aljadaan: “Minister Aljadaan said that economic and structural reforms have improved financial indicators… Initial estimates indicate a five percent growth rate for non-oil activities GDP during FY2025.” For FY2026 real GDP growth is forecasted at approximately 4.6%, led primarily by non-oil activities.
Regarding global conditions affecting Saudi Arabia’s outlook: “On global economy…global growth remains slow amid uncertainty stemming from escalating geopolitical tensions…” While inflation eases globally prompting central banks toward less restrictive monetary policy stances worldwide; rising global debt still challenges fiscal sustainability especially among emerging economies.
Aljadaan concluded emphasizing risk mitigation efforts: “Minister Aljadaan concluded by reaffirming government’s success mitigating risks from geopolitical developments…underscores strength & resilience [of] Saudi economy…”
