The state budget for 2026 revealed expectations of real GDP growth of 4.6%, driven by the growth of the domestic product of non-oil activities. As the main engine of economic growth.
The Ministry of Finance indicated in the budget report that there are three revenue scenarios: In the basic scenario, revenues are estimated at 1,147 billion riyals, with a deficit of 165 billion riyals, while in the higher scenario, revenues are expected to reach 1,206 billion riyals, with a deficit of 107 billion riyals, and in the lower scenario, they are expected to reach 1,063 billion riyals, with a deficit of 250 billion riyals. Expenditures are expected to reach about 1.313 billion riyals.
Comprehensive economic development
The Ministry of Finance confirmed that the Saudi government continues its endeavors to achieve comprehensive economic development goals, driven by an ambitious vision based on long-term financial and strategic planning. The 2026 budget shows that, in the medium term, the government continues to direct its resources towards transformational spending aimed at developing various sectors, by maximizing financial, economic and social returns through the optimal use of resources.
This includes focusing on sectors that are a major driver of the economy; Such as energy and mining and raising their status globally, in addition to enhancing the contribution of sectors that were not exploited before the launch of Saudi Vision 2030, such as tourism, entertainment, culture and sports, which today have become among the most prominent tributaries of the non-oil economy and have contributed to enhancing the quality of life. Investment also continues in foundational sectors such as industry, technology, transportation, and logistics. As pillars of sustainable growth and supportive of other sectors.
Target projects
The Ministry of Finance indicated the existence of a package of targeted projects for the coming year. It includes raising the percentage of highly skilled Saudi workers to 38.9%, expanding the teaching of the Chinese language to benefit 85,916 students, and establishing six hospitals with a capacity of 1,100 beds in Hail, Khamis Mushait, Al-Laith, Anak, Al-Jamoum, and Unayzah.
It also includes injecting 80,000 housing units and developed lands with investments of approximately 70 billion riyals, creating more than 11,000 jobs for national talent in industry and mining, registering 2,286 new industrial products, in addition to hosting 3,310 pilgrims, Umrah performers and visitors within the Custodian of the Two Holy Mosques’ guests program.
The Ministry explained that the most prominent directions of the 2026 budget are the continuation of reforms aimed at diversifying the economy, adopting targeted and counter-cyclical spending policies, while enhancing the Kingdom’s competitiveness and supporting sustainable economic growth. The directions also include supporting promising sectors, directing spending to national strategies and major projects, and enhancing the efficiency of the social support and subsidies system to ensure that they reach those who deserve them and achieve a sustainable social and economic impact.
Sector spending
The budget showed that the health and social development sector accounted for the largest share of spending at 259 billion riyals, followed by the military sector with 240 billion riyals, then general items with 236 billion riyals.
The education sector came with a value of 202 billion riyals, then security and administrative regions with 120 billion riyals, followed by the municipal services sector with 72 billion riyals. Spending on public administration amounts to about 57 billion riyals, and about 35 billion riyals on basic equipment and transportation.
Billionaire partnerships
The budget indicated that there are targets for a number of sectors, including the size of the communications and technology market in Saudi Arabia reaching 199 billion riyals by the end of 2026, and the addition of two new billion-dollar companies in the Saudi market, in addition to implementing the first phase of the new seventh track in the Riyadh sector, extending from the Diriyah Gate project in the north to the Qiddiya project in the south.
The targets also include increasing natural gas production capacity by 7%, replacing and maximizing the Kingdom’s oil and gas reserves, and adding 7.5 trillion standard cubic feet of raw gas.
Al-Jadaan: Economic reforms succeeded and enhanced growth
Finance Minister Mohammed Al-Jadaan confirmed that the results achieved so far reflect the success of economic and financial reforms aimed at promoting comprehensive growth and developing public financial management, with a focus on improving the quality of services provided to citizens, residents and visitors.
He pointed out that the government is steadfast in its approach of caring for the citizen and meeting his basic needs, and that it will continue spending on the education, health and social services sectors, in addition to implementing programs and projects aimed at raising the quality of government services and facilities and developing infrastructure in various regions of the Kingdom in a way that enhances the quality of life.
He explained that the decline in spending on some sectors in the estimates for 2025 and 2026 is due to the completion of a number of projects and raising the efficiency of operating expenses, in addition to the presence of non-recurring expenses in 2024.
He added that the 2026 budget confirms the continuation of strategic spending on development projects in accordance with sectoral strategies, supporting the enablers of economic diversification, improving the business environment, enhancing exports, and increasing the volume and quality of private sector investments.
Al-Jadaan pointed out that the first years of Saudi Vision 2030 witnessed huge economic and structural reforms, stressing: “Next year we will enter a new phase of Vision 2030.”
During the press conference to announce the budget, he stated that 93% of the targeted performance indicators for Vision 2030 have been achieved or are on track.
He added that 299 Vision 2030 indicators have been fully achieved. Of these, 257 exceeded targets, and 85% of the initiatives were completed or are proceeding according to the specified plan.
Al-Sayari: The banking sector enjoys financial solvency and asset quality
The Governor of the Saudi Central Bank, Ayman Al-Sayyari, confirmed that the monetary conditions in the Kingdom are stable as a result of the prudent monetary policy followed by the Central Bank. He explained that the banking sector enjoys good financial solvency and good asset quality, stressing that the bank will continue to achieve its goals of maintaining monetary stability and enhancing financial stability as two basic pillars in supporting the goals of Saudi Vision 2030, so that the financial sector will continue to play its role in the development process.
Expanding the teaching of the Chinese language to benefit 85,916 students
The most prominent projects for next year:
Creating more than 11 thousand jobs for national talent in industry and mining
Increasing the proportion of highly skilled Saudi workers to 38.9%
The state budget for 2026 revealed expectations for real GDP growth of 4.6%, driven by growth in non-oil activities, which are the main engine of economic growth.
The Ministry of Finance indicated in the budget report that there are three revenue scenarios; In the baseline scenario, revenues are estimated at 1,147 billion riyals with a deficit of 165 billion riyals, while in the high scenario, revenues are expected to reach 1,206 billion riyals with a deficit of 107 billion riyals, and in the low scenario, revenues are projected at 1,063 billion riyals with a deficit of 250 billion riyals. Expenditures are also expected to reach approximately 1.313 billion riyals.
Comprehensive economic development
The Ministry of Finance confirmed that the Saudi government continues its efforts to achieve the targets of comprehensive economic development, driven by an ambitious vision based on long-term financial and strategic planning. The 2026 budget illustrates that the government continues to direct its resources towards transformative spending aimed at developing various sectors, by maximizing financial, economic, and social returns through optimal resource utilization.
This includes focusing on sectors that are considered key drivers of the economy, such as energy and mining, enhancing their global standing, in addition to enhancing the contribution of sectors that were previously underutilized before the launch of Saudi Vision 2030, such as tourism, entertainment, culture, and sports, which have now become prominent contributors to the non-oil economy and have enhanced the quality of life. Investment continues in foundational sectors such as industry, technology, transport, and logistics services, as they are pillars for sustainable growth and support other sectors.
Targeted Projects
The Ministry of Finance outlined a package of targeted projects for the coming year, including raising the percentage of skilled Saudi workers to 38.9%, expanding the teaching of the Chinese language to benefit 85,916 students, and establishing six hospitals with a capacity of 1,100 beds in Hail, Khamis Mushayat, Al-Lith, Anq, Al-Jamoum, and Unayzah.
It also includes injecting 80,000 housing units and developed lands with investments near 70 billion riyals, creating more than 11,000 jobs for national competencies in industry and mining, registering 2,286 new industrial products, in addition to hosting 3,310 pilgrims, Umrah performers, and visitors under the Custodian of the Two Holy Mosques Guests Program.
The ministry clarified that the main trends of the 2026 budget involve continuing reforms aimed at diversifying the economy, adopting targeted spending policies that counter the economic cycle, while enhancing the Kingdom’s competitiveness and supporting sustainable economic growth. The trends also include supporting promising sectors, directing spending towards national strategies and major projects, and enhancing the efficiency of the social support and subsidy system to ensure it reaches those in need and achieves a sustainable social and economic impact.
Sector Spending
The budget showed that the health and social development sector accounted for the largest share of spending at 259 billion riyals, followed by the military sector at 240 billion riyals, and general items at 236 billion riyals.
The education sector came in at 202 billion riyals, followed by security and administrative regions at 120 billion riyals, and the municipal services sector at 72 billion riyals. Spending on general administration is about 57 billion riyals, and on basic equipment and transport about 35 billion riyals.
Billion-Dollar Partnerships
The budget indicated targets for several sectors, including reaching a size of the telecommunications and technology market in Saudi Arabia of 199 billion riyals by the end of 2026, adding two new billion-dollar companies to the Saudi market, in addition to implementing the first phase of the new seventh route in the Riyadh sector, extending from the Diriyah Gate project in the north to the Qiddiya project in the south.
Targets also include increasing natural gas production capacity by 7%, replacing and maximizing the Kingdom’s oil and gas reserves, and adding 7.5 trillion standard cubic feet of raw gas.
Al-Jadaan: Economic Reforms Have Succeeded and Enhanced Growth
Finance Minister Mohammed Al-Jadaan affirmed that the results achieved so far reflect the success of economic and financial reforms at aimed at enhancing comprehensive growth and developing public financial management, with a focus on improving the quality of services provided to citizens, residents, and visitors.
He pointed out that the government remains committed to prioritizing the needs of citizens and will continue to spend on education, health, and social services, in addition to implementing programs and projects aimed at improving the quality of government services and facilities and developing infrastructure in various regions of the Kingdom, thereby enhancing the quality of life.
He explained that the decline in spending on some sectors in the estimates for 2025 and 2026 is due to the completion of several projects and improving the efficiency of operational expenditures, along with the presence of non-recurring expenditures in 2024.
He added that the 2026 budget confirms the continuation of strategic spending on development projects according to sectoral strategies, supporting the enablers of economic diversification, improving the business environment, enhancing exports, and increasing the volume and quality of private sector investments.
Al-Jadaan noted that the early years of Saudi Vision 2030 witnessed significant economic and structural reforms, affirming: “We will enter a new phase of Vision 2030 next year.”
He indicated during the press conference announcing the budget that 93% of the targeted performance indicators for Vision 2030 have been achieved or are on the right track.
He added that 299 indicators from the Vision 2030 indicators have been fully achieved; Of these, 257 exceeded the targets, and 85% of the initiatives have been completed or are proceeding according to the specified plan.
Al-Sayyari: The Banking Sector Enjoys Financial Solvency and Asset Quality
The Governor of the Saudi Central Bank, Ayman Al-Sayyari, confirmed that the monetary conditions in the Kingdom are stable due to the prudent monetary policy followed by the central bank. He explained that the banking sector enjoys good financial solvency and considerable asset quality, affirming the bank’s continued efforts to achieve its goals of maintaining monetary stability and enhancing financial stability as two essential pillars in supporting the targets of Saudi Vision 2030, allowing the financial sector to continue playing its role in the development journey.
Expanding the teaching of the Chinese language to benefit 85,916 students
Key projects for the coming year:
Creating more than 11,000 jobs for national competencies in industry and mining
Raising the percentage of skilled Saudi workers to 38.9%
