Saudi Arabia’s pre-budget statement for fiscal year 2026 underscores the government’s commitment to financial sustainability, economic growth, and empowering the private sector as the primary driver of long-term development, according to experts who spoke to Asharq Al-Awsat.
The Ministry of Finance on Tuesday released the pre-budget statement, projecting total expenditures at SAR1.313 trillion, revenues of SAR1.147 trillion, and a deficit of about 3.3 percent of GDP.
The figures signal that the government will continue its countercyclical, expansionary spending policies, focusing on national priorities with broad social and economic impact in line with the goals of Saudi Vision 2030.
The statement highlighted that since the launch of Vision 2030, Saudi Arabia has undertaken structural reforms that improved the business environment, enhanced the role of the private sector, and advanced sustainable development. Preliminary estimates point to 4.6 percent growth in real GDP in 2026, led by strong performance in non-oil sectors.
Economists stressed that the government remains committed to development strategies while prioritizing spending efficiency.
Shura Council member Fadl al-Buainain said that Vision 2030 has focused on diversifying income sources, ensuring fiscal sustainability, and increasing non-oil revenues to reduce reliance on volatile oil prices.
He noted that the 2026 budget reflects a careful review of spending priorities.
“The government seeks to maximize the benefits of public expenditure by channeling resources toward projects with the highest economic and social impact. This approach emphasizes the value of citizens at the center of development and strengthens the economy’s ability to absorb major development programs.”
Al-Buainain stressed that essential public services will not be affected by this reprioritization, which remains aligned with the goal of improving quality of life under the National Transformation Program.
While projected revenues stand at SAR1.147 trillion, planned expenditures exceed that at SAR1.313 trillion, signaling continued expansionary spending to stimulate growth, empower the private sector, and attract further investment.
He pointed out that reforms have already increased non-oil revenues and shifted the economy structurally. “Non-oil activities now play a central role in driving growth, contributing an unprecedented 55.6 percent of GDP.”
He also highlighted a trade surplus of SAR98.9 billion in the first half of 2025, supported by strong non-oil exports, including re-exports.
Salem Baajajah, professor of economics at King Abdulaziz University, said Saudi Arabia is on track to achieve 4.4 percent GDP growth, supported by robust economic fundamentals and rising non-oil revenues.
He added that expansionary fiscal policies have boosted employment and reduced unemployment rates by driving projects with both economic and social returns.
Economic researcher Fadwa AlBawardi stressed that the 2026 budget strategy prioritizes fiscal sustainability and long-term growth. She said the government is reassessing spending priorities to ensure resources are directed to initiatives with significant impact while maintaining flexibility to adapt to changing circumstances.
AlBawardi added that empowering the private sector remains central: “The strategy ensures a competitive, investment-friendly environment that allows the private sector to continue as the main engine of economic transformation.”
She also underlined that citizens remain at the heart of budget planning, with a focus on protecting essential services and improving living standards.
“The government is pressing ahead with development strategies across ministries, emphasizing spending efficiency and ensuring balanced, inclusive growth across all regions and sectors,” she added.
