On December 2, Crown Prince Mohammed bin Salman approved Saudi Arabia’s 2026 budget during a Cabinet meeting in Dammam. As per the “Budget Statement” released by the Ministry of Finance, the document sets total expenditure at SR1.31 trillion, slightly below the SR1.34 trillion planned for 2025.
The statement further said that the Kingdom will likely generate SR1.15 trillion (USD 306 billion) in revenue in 2026, a 5.1% increase from the 2025 estimate, highlighting the gains from the Kingdom’s ongoing economic diversification agenda, named “Vision 2030.”
The ministry said the government remains focused on enhancing spending efficiency, bolstering the quality of essential services, and advancing giga-projects and priority national strategies aligned with the objectives of Vision 2030.
“These efforts include the continued development of infrastructure, improvements to quality of life, and strengthening public services for citizens, residents, and visitors,” the statement said.
Revised estimates for 2025 point to a budget deficit of SR245 billion, equivalent to 5.3% of the Kingdom’s GDP. The ratio is expected to reach around SR165 billion in 2026, or 3.3% of GDP.
“The budget deficit is estimated to continue at lower levels over the medium term, due to the government’s adoption of targeted countercyclical spending policies. The government is committed to maintaining a balance between responding to economic cycles and adhering to fiscal sustainability targets,” the Ministry of Finance noted.
The 2026 budget also projects next year’s real GDP growth at 4.6%, in line with the figure outlined in the pre-budget statement issued in September 2025. Crown Prince Mohammed bin Salman termed the budget the document outlining the Kingdom’s commitment to placing citizens’ welfare at the centre of administrative priorities.
He further instructed ministers and officials to actively implement the programmes and projects outlined in the budget, particularly the social and developmental initiatives that advance Vision 2030, while emphasising that citizens and their services remain the administration’s top priority.
According to the Saudi Press Agency, the Crown Prince further noted that the structural transformation achieved since the Vision 2030’s launch has boosted the Kingdom’s non-oil sector’s growth, apart from keeping inflation below global averages, improving the overall business environment, strengthening the private sector’s role as the Gulf nation’s key development partner, and positioning the country as a global economic and investment hub.
He said the administration has continued supporting the Kingdom’s growth journey while maintaining fiscal sustainability, enhancing the local economy’s resilience to global volatilities and sustaining development momentum. The turnaround has been achieved through disciplined and flexible fiscal, economic, and social policies, long-term planning, and the strategic use of sovereign financing tools under a medium-term debt framework.
The Crown Prince also termed the positive economic indicators as a continuation of ongoing reforms under “Vision 2030.” Preliminary estimates show real GDP growth of 4.6%, driven by a 4.8% expansion in non-oil activities, which continue to anchor the Kingdom’s economic performance.