Saudi Arabia Finalizes $349.2 Billion Budget with $305.9 Billion Revenue

Saudi Arabia has officially approved its general budget for the fiscal year 1447/1448 AH (2026 AD), allocating a substantial SR1.31 trillion (approximately $349.2 billion) in expenditures. This budget incorporates a projected deficit of SR165.4 billion ($44 billion), aligning with the nation’s ongoing efforts to enhance economic and development initiatives under the ambitious Saudi Vision 2030 framework.

Cabinet Approval of the 2026 Budget

The strategic decision was solidified during a Cabinet session led by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, who also serves as the Prime Minister and Chairman of the Council of Economic and Development Affairs. This pivotal meeting occurred on December 2, 2025, in Dammam, where ministers meticulously reviewed the entire budget framework prior to its endorsement.

Key Financial Figures

The approved state general expenditures are detailed as follows:

• Total Expenditures: SR1,312,800,000,000 ($349.2 billion)
• Estimated Revenues: SR1,147,400,000,000 ($305.9 billion)
• Projected Deficit: SR165,400,000,000 ($44 billion)

Crown Prince Mohammed bin Salman urged government officials to commit to delivering the initiatives, strategies, and social projects outlined in the budget. He underscored the need for these efforts to align seamlessly with the overarching goals of Saudi Vision 2030.

Goals of Saudi Vision 2030

Highlighting the occasion, the Crown Prince noted that 2026 marks the onset of the third phase of Vision 2030, which necessitates accelerated implementation and significant progress to ensure lasting impact beyond the year 2030.

The structural transformations initiated since the launch of Vision 2030 have successfully:

• Enhanced growth rates in non-oil sectors
• Maintained inflation rates beneath global averages
• Strengthened the overall business environment
• Increased the private sector’s involvement in the economy
• Solidified the Kingdom’s status as a prominent global investment hub

Crown Prince Mohammed bin Salman reaffirmed the government’s unwavering support for economic growth and fiscal responsibility through a disciplined approach to economic and social policies. The emphasis will be on long-term planning and strategic use of sovereign financing mechanisms as part of the medium-term debt strategy.

Commitment to Sustainable Growth

The Kingdom is dedicated to maintaining sustainable levels of public debt, building robust financial reserves, and accelerating diversification initiatives to bolster resilience amid global economic fluctuations.

Achievements in Employment and Homeownership

In his remarks, the Crown Prince announced a significant milestone in private sector employment, with 2.5 million Saudi nationals currently holding jobs in the sector — the highest figure recorded to date. This surge has contributed to reducing the unemployment rate below the Vision 2030 target of 7 percent.

Moreover, the real estate sector has witnessed substantial growth, with homeownership among Saudi families reaching 65.4 percent by the close of 2024, thus exceeding anticipated targets for 2025.

Strategic national initiatives focus on creating quality jobs, fostering entrepreneurship, empowering women, enhancing social assistance, and broadening investment avenues.

Positive Economic Indicators

Crown Prince Mohammed bin Salman celebrated promising economic indicators stemming from Vision 2030 reforms, including a preliminary estimate of 4.6 percent real GDP growth, spurred by a 4.8 percent increase in non-oil activities.

The 2026 budget is seen as a reinforcement of the Kingdom’s dedication to enhancing the adaptability and resilience of its economy. This includes maintaining spending efficiency while ensuring transparent execution of all planned Vision 2030 projects.

Role of the Public Investment Fund

The Crown Prince emphasized the critical role of the Public Investment Fund (PIF) as the Kingdom’s investment arm, which supports Vision 2030 through the development of strategic sectors and fostering global economic partnerships. He also noted the complementary contributions of the National Development Fund and its affiliated entities in promoting economic growth and diversification in conjunction with the state budget.

Furthermore, he highlighted that economic reforms have significantly increased the private sector’s share of real GDP to 50.3 percent, illustrating its vital role in advancing infrastructure development and enhancing essential services.

In closing, Crown Prince Mohammed bin Salman conveyed the Kingdom’s commitment to nurturing human capabilities, advancing comprehensive development goals, and assuming leadership across various sectors, while continuing humanitarian outreach both at home and abroad.

Published on 1764736842 • Category: Politics & Economics,Saudi Budget,Saudi budget surplus,Saudi economy