Saudi Arabia Says It Will Keep Big Spending Plans in 2026 Budget
Image used for illustrative purpose. Photo: SPA
Riyadh: Saudi Finance Minister Mohammed Aljadaan said the Kingdom will continue spending more money in 2026 to support growth, jobs, and important services for the people.
Aljadaan explained that the government wants strong and steady planning for the coming years. He said Saudi Arabia expects to spend about SAR 1.313 trillion in 2026, and this number may grow to around SAR 1.419 trillion by 2028. He added that government income is also expected to rise because the economy is growing faster.
During a press conference about the new 2026 budget, the minister said that even with the huge spending on national projects, the government is still focused on improving key services like schools, hospitals, social programs, and city services. These areas alone will receive about SAR 533 billion in 2026.
He said that next year will be the start of a new phase where the government and private sector work together to make the most impact from all the investments and projects. The minister also talked about the progress of Saudi Vision 2030. He said that 93 percent of the plan’s goals are achieved or moving in the right direction. About 85 percent of the Vision’s projects are finished or running as planned, and 299 targets have already been reached ahead of time.
Aljadaan explained that the 2025 budget ended with spending of SAR 1.336 trillion, income of SAR 1.091 trillion, and a deficit of about SAR 245 billion. He said this deficit is planned on purpose to help the country grow. The government chooses to borrow money only when it believes the returns will be higher than the cost—and right now, that is happening.
He said that the Saudi economy, especially the non-oil part, has grown an average of 5 percent over the last four to five years. Many of the benefits from today’s spending will appear in the future, so the country will continue this approach in 2026, 2027, and 2028.
The minister also repeated the Crown Prince’s message that the main goal of all these projects is to support and improve the lives of Saudi citizens. He talked about how the Kingdom has changed quickly since the start of Vision 2030. For example, private sector investment increased by about 40 percent in less than eight years—something very hard for most countries to achieve. This shows that investors trust the Saudi economy.
Aljadaan said that non-oil activities now make up 55.4 percent of the economy, a historic number. He believes the 2030 target will be reached on time or even earlier. He also shared that the number of small and medium businesses in the country grew from 500,000 to 1.7 million. This big jump helped create around 1.2 million new jobs.
By the end of 2025, the minister expects the economy to grow by 4.4 percent and for the country’s total economic value (GDP) to reach SAR 5.6 trillion by 2028. Even though Saudi Arabia is becoming stronger, Aljadaan said the country still relies partly on oil. Vision 2030 aims to reduce this reliance but not remove oil completely because it remains an important resource for many years ahead.
He also highlighted the growth of the Public Investment Fund (PIF), which increased its assets from SAR 150 billion to more than SAR 800 billion in a short time. He said the PIF does not give profits to the government because its goal is long-term investment for future generations.
On health and education, the minister said spending will be more than SAR 460 billion next year. Privatizing some services, like hospitals, does not reduce support for citizens. Instead, the government will pay to buy services from these facilities to ensure people still receive care.
When asked about project planning, Aljadaan said that long-term plans must be flexible. This means some projects may be expanded or reduced depending on future needs and changes in the country.
