Saudi Arabia's quarterly budget deficit narrowed to 34.3 billion riyals in the second quarter, down by nearly three quarters

According to Saudi finance ministry data reported on Thursday, 30 July 2026, the kingdom's budget deficit for the three months to the end of June 2026 came in at 34.3 billion Saudi riyals, or 9.1 billion dollars. That compares with 125.7 billion riyals in the first quarter, meaning the quarterly shortfall narrowed by nearly three quarters.

Saudi oil revenue rose 28 percent from the previous quarter, while spending fell 3.5 percent, although second-quarter expenditure was still 11 percent higher than the same quarter a year earlier. The oil sector contracted almost 25 percent over the quarter, and the country's crude output remains well below prewar levels after the attacks and the closure of the Strait of Hormuz. Riyadh has redirected part of its crude by pipeline to the Red Sea port of Yanbu, allowing it to sell reduced volumes at higher prices.

EFG Hermes estimates that Saudi Arabia's budget breakeven now sits near 115 dollars a barrel, up from about 96 dollars last year. The International Monetary Fund expects higher prices to more than offset lower export volumes, narrowing the deficit to 3.7 percent of GDP this year and 3.1 percent in 2027. Riyadh has already signalled that some Vision 2030 projects may be delayed or scaled back.