Saudi Arabia's 2027 Budget: 1.392 Trillion Rials in Expenditures and 1.202 Trillion Rials in Revenues

The Saudi Ministry of Finance announced today, Wednesday, the preliminary statement of the general state budget for the fiscal year 1448/1449 AH (2027 CE), which includes estimates of total expenditures reaching approximately 1.392 trillion riyals (equivalent to $371.2 billion) and revenues of approximately 1.202 trillion riyals (equivalent to $320.5 billion).

Al Arabiya Net reported that the statement comes within the framework of a fiscal policy that balances supporting economic growth with continuing to implement developmental priorities, while maintaining the sustainability of public finances.

The statement clarified that continuing to implement economic diversification initiatives and economic reforms is expected to support revenues in the medium term. Total revenues are projected to reach approximately 1.202 trillion riyals in 2027, rising to approximately 1.351 trillion riyals in 2029.

Economic diversification initiatives and reforms have contributed to increasing non-oil revenues from approximately 166 billion riyals in 2015 to 505 billion riyals in 2025, thereby enhancing the stability and sustainability of public revenues.

Total expenditures are estimated to reach approximately 1.392 trillion riyals in 2027, rising to approximately 1.544 trillion riyals in 2029, amid continued spending on developmental and strategic priorities and projects with economic and social returns. Projections indicate a budget deficit for 2027 of approximately 3.6% of GDP, within the framework of a fiscal policy based on long-term financial planning and the maintenance of financial sustainability.

The statement noted that economic and geopolitical developments during 2026 affected the pace of economic growth in the Kingdom. Preliminary estimates indicate a decline in real GDP by 3.6%.

This decline is attributed to oil sector activities, which are expected to decrease by 21.8%, while positive growth rates in non-oil activities are expected to continue at 3.2%, helping to mitigate the impact of the downturn in oil activities.

The statement reviewed the key economic indicators for 2026, which indicated that non-oil activities grew by 1.8% during the first half of the year, with their contribution to GDP rising to historic levels of 57.3% during the same period, supported by strong domestic demand and private investment inflows.

Preliminary projections indicate that the inflation rate will rise to approximately 2.1% for the full current year, while the unemployment rate among Saudis fell to 6.5% in the second quarter of 2026.

The statement clarified that the Saudi government intends to continue domestic and international financing operations in accordance with the medium-term debt strategy framework, through public and private channels, by issuing bonds, sukuk, and loans at fair costs. It also intends to expand alternative government financing operations during 2027 and the medium term, through project financing, infrastructure financing, and export credit agencies.