Saudi Arabia’s budget deficit fell by 40% sequentially in Q2 to $9.2bn, bringing the total year-to-date figure to $24.9bn. Despite the improvement from Q1, this is already within touching distance of the budget forecast’s full year deficit figure of $26.9bn. Revenues increased by $10bn from Q1 to $80.4bn despite oil prices tumbling in early April following the rollout of the new US tariff regime. Oil revenues ticked up last quarter by $600mn to $40.5bn, while higher tax revenues drove non-oil revenues to a record $40bn. Q2 is typically the high-point for tax revenues, pointing to a weaker budget performance and higher deficit for Q3.