Saudi Arabia has officially approved its state budget for the 2026 fiscal year. The plan forecasts a narrower fiscal deficit and marks a strategic pivot in government spending toward priority non-oil sectors.
The Kingdom projects a deficit of 165 billion riyals ($44 billion). This represents approximately 3.3% of its Gross Domestic Product (GDP). This figure is lower than the revised 2025 deficit estimate of 245 billion riyals.
The 2026 budget signifies the start of a new chapter in Saudi Arabia’s economic transformation. Officials describe it as the beginning of the “third phase” of Vision 2030 launched by Crown Prince Mohammed bin Salman in 2016.
This new phase shifts focus from launching reforms to maximising their impact. The Crown Prince stated the goal is “accelerating the pace of progress and increasing growth opportunities to achieve a sustainable impact beyond 2030.”
بالانفوجرافيك .. ميزانية 2026: الإيرادات 1.147 تريليون ريال والإنفاق 1.312 تريليون ريال والعجز 165.4 مليار ريال #ميزانية_السعودية2026#SaudiBudget2026 pic.twitter.com/7gpmNDeGDC
— صحيفة مال (@Maaalnews) December 2, 2025The change in tone accompanies a major realignment of the Kingdom’s investment strategy. The government is refocusing its $925 billion sovereign wealth fund, the Public Investment Fund (PIF), away from delayed mega real-estate projects.
The new priority sectors include industry, logistics, minerals, artificial intelligence, and religious tourism. Finance Minister Mohammed Al Jadaan explained the shift to Reuters. He stated: “Our level of spending… has been consistent, but now it is about what we are spending on, rather than how much we are spending.”
Saudi Arabia’s Cabinet approves the Kingdom’s draft budget for 2026, setting projected total revenues at 1.147 trillion riyals ($306 billion), total expenditures at 1.313 trillion riyals ($350 billion), and estimating a deficit of 165.4 billion riyals ($44 billion).#SaudiArabia pic.twitter.com/SMFQ6gSIUZ
— Al Arabiya English (@AlArabiya_Eng) December 2, 2025A specific target highlighted in the budget is attracting over 20 million Umrah pilgrims in 2026. This marks a sharp increase from the 15 million expected this year. Total expenditure for 2026 is projected at 1.31 trillion riyals, slightly lower than the 2025 estimates and total revenue is forecast at 1.15 trillion riyals, a modest increase.
#SaudiBudget2026: Saudi Cabinet reviews and approves the state’s general budget for 2026, including the following:
– Public expenditures set at SR1,312.8 billion.
– State revenues estimated at SR1,147.4 billion.
– Budget deficit projected at SR165.4 billion. pic.twitter.com/nhUoXSNMSh
— Saudi Gazette (@Saudi_Gazette) December 2, 2025Finance Minister Jadaan explicitly called this a strategic fiscal stance. “This is a deficit by design,” he stated during a media briefing. “We, by policy choice, will have a deficit until (20)28.”
