Saudi Arabia has signed off on a SAR1.15 trillion ($310 billion) revenue target for 2026, marking a 5.1% rise on projections for 2025 as the Kingdom continues to push ahead with its economic diversification plans, according to the Ministry of Finance.
The 2026 budget was approved on 2 December by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud during a Cabinet session in Dammam. Total expenditure has been set at SAR1.31 trillion, a slight reduction from the SAR1.34 trillion revised spending estimate for 2025, Arab News reported, citing the official Budget Statement.
The Finance Ministry said the government will maintain its emphasis on improving spending efficiency, enhancing essential public services, and advancing giga-projects that sit at the heart of Saudi Vision 2030. Priority national strategies will also continue to be supported as part of the country’s long-term transformation plans.
Revised figures for 2025 now indicate a budget deficit of SAR245 billion, equivalent to 5.3% of GDP. The deficit is expected to narrow to around SAR165 billion in 2026, representing 3.3% of GDP. The ministry noted that the projected shortfall will be managed through targeted countercyclical spending policies designed to support economic stability.
In its statement, the ministry said ongoing efforts include expanding infrastructure projects, improving quality of life indicators, and strengthening public services for citizens, residents, and visitors.
Crown Prince Mohammed bin Salman said the 2026 budget reflects the government’s continued commitment to prioritising citizens’ welfare. According to the Saudi Press Agency (SPA), he instructed ministers and government bodies to press ahead with the delivery of programmes and projects outlined in the budget, especially those tied to development and social priorities aligned with Vision 2030.
He also pointed to the structural reforms achieved since the launch of Vision 2030, highlighting gains in the non-oil economy, lower-than-average global inflation levels, an improved business climate, and a stronger role for the private sector as a development partner. These reforms, he said, have helped position Saudi Arabia as a global hub for investment and economic activity.
The Crown Prince added that the government remains committed to supporting economic growth while preserving fiscal sustainability. He said the Kingdom is working to reinforce the local economy’s resilience against international market fluctuations and maintain steady development through disciplined fiscal, economic, and social policies, alongside long-term planning and the strategic use of sovereign financing tools under a medium-term debt strategy.
SPA reported that he highlighted positive indicators as part of the ongoing progress under Vision 2030. Preliminary estimates show real GDP growth of 4.6%, supported by a 4.8% increase in non-oil activities, which continue to drive overall economic performance.
He stressed that the 2026 budget reinforces the government’s focus on strengthening economic resilience, supporting sustainable expansion, and equipping the country to manage global economic challenges.
The Ministry of Finance said the budget deficit is projected to remain at lower levels over the medium term following the adoption of targeted countercyclical spending measures. “The government is committed to maintaining a balance between responding to economic cycles and adhering to fiscal sustainability targets,” the ministry stated.
The budget also outlines real GDP growth of 4.6% in 2026, in line with projections made in the pre-budget statement released in September.
