Doha:The preliminary statement for Saudi Arabia's 2027 state budget anticipates total expenditures of approximately SAR 1.392 trillion and total revenues of around SAR 1.202 trillion, resulting in an estimated deficit of about 3.6 percent.
According to Qatar News Agency, the Saudi Ministry of Finance has indicated that ongoing economic diversification initiatives and reforms are expected to support revenue growth over the medium term. By 2029, total revenues are projected to increase to approximately SAR 1.351 trillion, while expenditures are estimated to rise to approximately SAR 1.544 trillion. This spending is aimed at development and strategic projects with economic and social returns.
The budget deficit for 2027 is projected at roughly 3.6 percent of GDP, aligning with a fiscal policy focused on long-term financial planning and sustainability. This approach allows the government to maintain balanced fiscal policies, supporting economic growth and the implementation of priority projects under Saudi Vision 2030.
In 2026, economic and geopolitical developments affected Saudi Arabia's economic growth, with preliminary estimates showing a 3.6 percent contraction in real GDP. This decline is largely due to a projected 21.8 percent decrease in oil activities, although non-oil activities are expected to grow by 3.2 percent, offsetting some of the impact.
The statement from the Ministry also highlighted key economic indicators for 2026, revealing that non-oil activities grew by 1.8 percent in the first half of the year, with their contribution to GDP reaching a historic level of 57.3 percent, driven by strong domestic demand and private investment.
Additionally, inflation is projected to rise to about 2.1 percent for the entire year, while the unemployment rate among Saudi nationals decreased to 6.5 percent in the second quarter of 2026.