Saudi Arabia is projecting a fiscal deficit of 3.6 percent of its gross domestic product (GDP) for the year 2027, as detailed in the Finance Ministry’s pre-budget statement. The government has outlined total expenditures at 1.39 trillion Saudi riyals ($370.21 billion) and expects revenues to be around 1.20 trillion riyals. This budget framework is designed to prioritize developmental financing while maintaining long-term fiscal sustainability.
Looking ahead, the Kingdom anticipates an increase in revenues to 1.351 trillion riyals by 2029, with expenditures projected at 1.544 trillion riyals. This financial strategy is part of broader economic reforms under Vision 2030, which aim to diversify the economy, enhance the business environment, and boost the private sector’s role in economic growth. Notably, non-oil revenues have seen a significant rise, from 166 billion riyals in 2015 to an expected 505 billion riyals by 2025.
Saudi Arabia’s preliminary estimates suggest a contraction in real GDP by 3.6 percent in 2026, primarily due to an anticipated 21.8 percent decline in oil-sector activity. However, non-oil activities are expected to grow by 3.2 percent, potentially offsetting some of the oil sector’s weaknesses. By 2027, the Finance Ministry forecasts a robust real GDP growth of 12.8 percent, with inflation predicted to remain stable at an average of 1.9 percent annually from 2027 to 2029.
Further financial strategies include continued borrowing through domestic and international markets in 2027. The government plans to leverage bonds, sukuk, loans, and project and infrastructure financing to support these initiatives. This fiscal strategy is crafted to underpin economic growth, ensure financial stability, and maintain flexibility in response to global economic and geopolitical developments, all while advancing the objectives of Vision 2030.