Saudi Arabia issues 2026 Pre-Budget Statement projecting SAR1.3 trillion in spending

Riyadh, September 30, 2025 (Saudi Arabia Breaking News) – The Ministry of Finance published the Pre-Budget Statement for Fiscal Year 2026, estimating total expenditures at SAR1,313 billion and revenues at SAR1,147 billion, with a projected deficit of 3.3% of GDP.

The statement confirmed that the government will continue adopting expansionary fiscal policies directed toward national priorities with social and economic impact, in line with Saudi Vision 2030 goals to diversify the economy.

Since the launch of Vision 2030, the Kingdom has implemented structural reforms that improved the business environment, expanded the role of the private sector, and supported progress toward the Sustainable Development Goals. Preliminary estimates for 2026 project GDP growth of 4.6%, driven by non-oil activities.

Medium-term projections show revenues rising to SAR1,294 billion by 2028, while expenditures are expected to reach SAR1,419 billion. The statement emphasized that accelerated project implementation has provided fiscal flexibility, allowing counter-cyclical spending policies.

For 2025, real GDP growth is expected at 4.4%, supported by non-oil activity growth of 5.0%, underpinned by strong domestic demand and improved employment. Saudi unemployment declined to 6.8% in the second quarter of 2025, the lowest on record.

The Ministry of Finance also outlined plans to continue financing through bonds, sukuk, loans, and project finance, alongside export credit agency support.

Finance Minister Mohammed Aljadaan said the 2026 budget aims to consolidate the Kingdom’s fiscal strength while supporting growth. He noted that the public debt-to-GDP ratio remains low and within safe limits compared to other economies, backed by reserves that ensure flexibility to respond to shocks and emergencies.

“In light of continued global uncertainty in 2026 and the medium term, including geopolitical tensions and protectionist policies, the government continues to monitor risks and proactively guide policies to mitigate potential challenges,” Aljadaan said.

He added that targeted development spending, national strategies, and private sector participation will remain central, with an emphasis on balancing growth with fiscal sustainability.

The Pre-Budget Statement, issued for the eighth consecutive year, reflects the Kingdom’s efforts to enhance transparency and fiscal disclosure.

The full statement is available at the Ministry of Finance: link.