Saudi Minister of Finance Mohammed Al-Jadaan stressed on Tuesday that the government will continue with expansionary spending in the 2026 budget, highlighting the importance of stability and medium-term planning.
He noted that total expenditure is expected to reach SAR1.313 trillion in 2026 and approximately SAR1.419 trillion in 2028, with revenues projected to grow, supported by accelerated economic growth.
During a press conference tackling the approval of Saudi Arabia’s general budget for the 2026 fiscal year, he stated: “Despite all spending on major strategies and projects, the government continues to focus on core services and their improvement to boost services provided to citizens, including education, health, social services, and municipal services, which will reach SAR533 billion in 2026.”
He revealed that the phase of maximizing impact will begin at the start of next year and will require significant efforts from both the government and the private sector.
Al-Jadaan provided a brief overview of Saudi Vision 2030, noting that 93% of the vision’s targeted performance indicators have been achieved or are on track, and 85% of the initiatives are either completed or progressing as planned, with 299 indicators having met their targets ahead of 2030.
He addressed the next phase, which will begin next year, focusing on maximizing impact and preparing for the post-2030 period, citing the 2025 budget figures, which closed with expenditures estimated at SAR1.336 trillion, revenues at approximately SAR1.091 trillion, and a deficit of roughly SAR245 billion.
“I spoke last year, and I will briefly repeat that budget deficits differ according to their purposes. For us in Saudi Arabia, during this period and in previous years, the deficit has been a targeted strategic deficit, based on a government policy that assessed the Kingdom’s economic capacity and financial strength to spend in order to achieve accomplishments, implement projects, and execute strategies, even if it required borrowing,” the minister said.
“The aim is for this borrowing of SAR245 billion to generate a return higher than its cost, which is what is happening in the Kingdom. Currently, economic growth, particularly in the non-oil sector, has averaged 5% over the past four to five years,” he went on to say.
“The returns on most of the expenditures we are making now will come in the coming years, not immediately. Therefore, it may be appropriate to continue, and this is what we will continue to do in 2026, 2027, and 2028, increasing spending as long as the return on this spending exceeds the cost of borrowing.”
He highlighted a statement by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, that the primary goal is the citizen and the support they receive. The minister noted that these are very simple examples of social support provided in the 2025 budget.
“The structural transformations in the economy that have occurred since the launch of Saudi Vision 2030 are usually difficult to achieve in economies over a short period from the launch of the Vision — whether in terms of private sector investment as a percentage of GDP changing by approximately 40% in a period of less than eight years since the actual implementation of the Vision's programs began,” he remarked.
“It is extremely difficult to move the private investment share in GDP by 40% in such a timeframe, yet this has been achieved in the Kingdom, which indicates a very high level of confidence from investors in the economy,” he said.
Al-Jadaan also pointed out that the contribution of non-oil activities is remarkable in terms of its growth and the level the Kingdom has reached, describing it as historic with the figure reaching 55.4%, expecting the 2030 target will be met by the end of 2030 or even earlier.
Moreover, he addressed the increase in the number of micro, small and medium enterprises in the Kingdom, which stood at approximately 500,000 a few years ago and has now reached 1.7 million. This means that 1.2 million job opportunities have been created and launched through Vision 2030, he noted.
Al-Jadaan also expected that by the end of 2025, real GDP growth would reach 4.4%, and that nominal GDP would rise to reach SAR5.6 trillion by 2028.
The Kingdom has not yet reached full sustainability, as government revenues are still affected by oil prices, he added, stressing that long-term sustainability will be achieved through meeting the targets of Vision 2030.
Moreover, he indicated that Vision 2030 was not intended to make the Kingdom cease relying on oil altogether, saying oil remains a very important element and a major national wealth that will continue for many years and decades to come.
The minister spoke about the sustainability phase and the significant growth achieved by the Public Investment Fund (PIF) in recent years, with its assets rising from SAR150 billion to more than SAR800 billion in a very short period, describing it as a major achievement.
However, he stressed that the PIF does not distribute profits to the government, explaining that the objective is long-term investment for the benefit of future generations, and noting that, in theory, loans could be reduced by requesting distributions, but this would not align with the sustainability objective.
On spending on health and education, the minister noted that expenditures will exceed SAR460 billion next year, saying this does not conflict with privatization.
