Saudi Arabia posts a 34.3 billion riyal budget deficit in the second quarter of 2026, taking the first half shortfall to 160 billion riyals

Saudi Arabia's Ministry of Finance reported on Thursday 30 July 2026 (8 Mordad 1405) that the Kingdom posted a budget deficit of 34.3 billion Saudi riyals (about 9.1 billion dollars) in the second quarter of 2026, bringing the first half shortfall to 160 billion riyals.

The second quarter deficit narrowed sharply from 125.7 billion riyals in the first quarter. Government revenue rose 12 percent year on year to 338.8 billion riyals in the quarter, while spending increased 11 percent to 373 billion riyals. Of total receipts, 185.1 billion riyals came from oil and 153.7 billion riyals from non-oil sources. The entire first half deficit was financed through borrowing, with no drawdown from government reserves.

On the spending side, employee wages were the largest item at 144.3 billion riyals, up 3 percent; financing expenses rose 41 percent to 16.8 billion riyals; and subsidies jumped 73 percent to 13.2 billion riyals. Spending on infrastructure and transport in the first half of 2026 was 21 percent higher than a year earlier. The International Monetary Fund, in its latest report, projected Saudi growth of 1.7 percent this year and 5.5 percent in 2027, saying the regional war and the near halt in shipping through the Strait of Hormuz have disrupted activity and trade, including oil exports.