Saudi Arabia Approves 2026 Budget With Higher Revenues and Focus on Citizens
Image used for illustrative purpose. Photo: SPA
Saudi Arabia has approved its budget for 2026, with the government expecting to make about SAR 1.147 trillion (around USD 305.5 billion). This is 5.1% more than what was expected in 2025. The increase in the budget shows the success of the Kingdom’s plans to grow new businesses outside the oil sector.
The decision came after a Cabinet meeting in Dammam, led by Crown Prince Mohammed bin Salman. The 2026 budget will spend SAR 1.31 trillion, slightly less than the previous year. The 2026 budget is expected to have a deficit of about SAR 165 billion, or 3.3% of the country’s GDP.
The Crown Prince asked all ministers to follow their tasks carefully and support the goals of Saudi Vision 2030, which enters its third phase in 2026. This phase will require faster work and stronger results to help the country grow even after 2030.
Stronger Economy and Better Living for Citizens
The Crown Prince said the government will keep putting people first. He shared that the changes made since Vision 2030 began are already making life better for everyone in the kingdom.. These include:
• Better growth in non-oil sectors
• Low inflation compared to other countries
• A stronger business environment
• A more active private sector
• A growing reputation as a global investment hub
Saudi Arabia will keep working on long-term plans to make the economy stable, strong, and ready for global changes. The government will continue using smart financial plans and debt tools to support the country’s growth.
Empowering Youth and Creating More Jobs
The Crown Prince highlighted major progress in helping young people succeed. A record 2.5 million Saudis now work in the private sector. Unemployment has dropped below the Vision 2030 target of 7%.
More families also own homes than before, with ownership reaching 65.4% by the end of 2024—higher than the goal set for 2025. The Kingdom will continue supporting families, women, business owners, and social programs.
Early estimates show a strong economy in the coming years, with real GDP expected to grow by about 4.6%, driven by a 4.8% rise in non-oil activities.
Growing Investment and Working With National Funds
The Public Investment Fund (PIF) will keep helping Saudi Arabia develop important sectors and build strong partnerships around the world. This supports economic diversification and keeps the country’s finances strong for the long term.
The private sector’s contribution has reached 50.3% of real GDP, showing that businesses now play a bigger role in Saudi Arabia’s growth than ever before.
The government will continue to improve infrastructure, public services, and long-term spending plans while staying transparent and responsible in how the budget is used.
Finance Minister: Spending Will Stay Strong in 2026
Finance Minister Mohammed Aljadaan said that the 2026 budget will keep strong spending to support stability and future planning. About SAR 533 billion will go toward core services like education, health, social care, and city services.
He shared that 93% of Vision 2030 performance targets are already completed or on track. Many goals have been met years ahead of schedule.
Minister Aljadaan explained that the current budget deficit is a “strategic deficit,” meaning the government is spending extra money now to build a stronger future, even if borrowing is needed. He said the returns from this spending are higher than the cost of borrowing.
Big Growth in Non-Oil Sectors and Small Businesses
The minister said that non-oil activities now make up 55.4% of the economy, a historic achievement. The number of small and medium businesses has also grown from around 500,000 to 1.7 million, creating more than 1.2 million jobs.
He expects real GDP to grow 4.4% by the end of 2025, with GDP rising to SAR 5.6 trillion by 2028.
He noted that while Saudi Arabia still earns much from oil, Vision 2030 aims to reduce not remove dependence on oil by building strong new industries.
Public Investment Fund’s Long-Term Vision
The Public Investment Fund’s assets have grown from SAR 150 billion to over SAR 800 billion in a short time. The minister explained that PIF’s goal is long-term growth for future generations, not giving profits to the government right away.
He also said spending on health and education will exceed SAR 460 billion next year, even as some services may be privatized to improve quality and efficiency.
When asked about long-term projects, he explained that plans must be flexible. Some projects may become bigger or smaller depending on future needs.
