Saudi government anticipates real GDP growth of 4.6% in 2026
Saudi Arabia’s Ministry of Finance
has released its 2026 pre-budget statement, projecting total expenditures of
$346.6 billion (SAR 1.3 trillion) and revenues of $304 billion (SAR 1.14
trillion). The estimated fiscal deficit is expected to reach 3.3% of GDP.
The government anticipates real GDP
growth of 4.6% in 2026, driven largely by continued expansion in non-oil
sectors.
Fiscal
strategy and economic outlook
The Kingdom will maintain its expansionary
fiscal policy, prioritizing national projects with social and economic impact,
while staying aligned with the broader objectives of Vision 2030 and its
economic diversification agenda.
Budget deficits are expected to
persist over the medium term but are projected to remain below the 2026 level
in subsequent years.
To fund spending, the government
will continue tapping both domestic and international financing markets,
utilizing instruments such as bonds, sukuk, loans, and alternative financing
methods, including project and infrastructure finance, and support from export
credit agencies.
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Finance Ministry confirms full funding for Vision 2030 projects
The pre-budget statement emphasizes
that accelerated program implementation has led to improved fiscal flexibility,
enabling the government to respond more effectively to economic developments
while preserving long-term stability.
Finance
Minister highlights resilience
Finance Minister Mohammed Aljadaan
said the 2026 budget is designed to strengthen the Kingdom’s fiscal position,
ensure public finance sustainability, and stimulate economic growth through
targeted development and social investments.
Aljadaan added that Saudi Arabia’s
debt-to-GDP ratio remains low by international standards and is supported by
healthy financial reserves, allowing the Kingdom to maintain flexibility and
resilience in the face of global economic fluctuations.
The pre-budget statement, now in its
eighth consecutive year, forms part of Saudi Arabia’s efforts to enhance fiscal
transparency and improve public financial disclosure.
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transformation on fast track in Saudi Arabia: Finance Minister
Key
economic indicators
- Real GDP Growth (2025): Expected to reach 4.4%, led by non-oil sector growth
of 5%
- Unemployment:
Fell to a record 6.8% in Q2 2025, reflecting stronger domestic demand and
job creation
- 2028 Projections:
- Revenues:
~$346.6 billion (SAR 1.3 trillion)
- Expenditures:
~$373.3 billion (SAR 1.4 trillion)
Private
sector and Vision 2030
The government will continue to support
national strategies and development projects with economic and social returns,
while also promoting a larger role for the private sector as a key partner in
long-term growth.
Since launching Vision 2030, Saudi
Arabia has implemented wide-ranging structural reforms, improved the business
climate, and deepened private sector participation, helping drive progress
toward sustainable economic goals.
Source:
Forbes Middle East
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