The Ministry of Finance released its 2027 pre-budget document this week, and provided a revised outlook for the current year. It has revised up its expected budget deficit for 2026 from $44bn to $65.3bn, although crucially this remains a narrower deficit than last year’s $73.8bn.
The revisions come as Saudi Arabia and other regional states have been caught up in the wider regional conflict. Notably, the more pessimistic outlook was driven by forecast expenditures rather than by a reduction in revenue. Saudi Arabia actually revised up its revenue forecast from $305.9bn to $317.3bn, but expenditure was increased by a more substantial $32.6bn to a record $382.7bn. Supply chain disruption and the need to repair damaged facilities have added to the financial pressure Saudi Arabia is facing. (CONTINUED - 200 WORDS)