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Saudi Arabia Forecasts 4.6 Percent Surge in 2026 Real GDP
(MENAFN) The Saudi Ministry of Finance unveiled its pre-budget statement for the 2026 fiscal year on Tuesday, forecasting a robust real GDP growth rate of approximately 4.6 percent, driven primarily by an anticipated surge in non-oil sector activity.
The statement highlighted that vigorous growth in non-oil industries, alongside ongoing government initiatives, is expected to elevate revenues over the medium term. Total revenues are forecast to hit around 1.15 trillion Saudi riyals ($307 billion) in 2026, climbing to 1.29 trillion riyals by 2028. Meanwhile, total expenditures are projected at roughly 1.31 trillion riyals in 2026, increasing to 1.42 trillion riyals by 2028.
Finance Minister Mohammed Al-Jadaan highlighted that the 2026 budget aims to reinforce Saudi Arabia's financial stability and secure the long-term sustainability of public finances while fostering economic growth. He also stressed the budget’s dedication to preserving development and social spending priorities, along with pushing forward structural reforms that improve both financial and economic efficiency and sustainability.
"In light of the continued global uncertainty during 2026 and over the medium term, as a result of the possibility of continued geopolitical tensions and increasing preventive policies, the government continues to monitor and analyze these risks, as a key element in enhancing the efficiency of financial planning, and proactively guide policies to address potential global economic challenges and reduce their negative impacts," the statement quoted him saying.
The report also noted that accelerating the implementation of several programs and projects has yielded tangible progress and increased fiscal flexibility. This adaptability allows the government to respond more effectively to changing economic conditions and adopt fiscal policies aimed at mitigating the economic cycle.
Since the launch of Saudi Vision 2030 in 2016, the kingdom has enacted structural reforms that have improved the business environment, empowered the private sector, and promoted sustainable development goals, according to the statement.
The statement highlighted that vigorous growth in non-oil industries, alongside ongoing government initiatives, is expected to elevate revenues over the medium term. Total revenues are forecast to hit around 1.15 trillion Saudi riyals ($307 billion) in 2026, climbing to 1.29 trillion riyals by 2028. Meanwhile, total expenditures are projected at roughly 1.31 trillion riyals in 2026, increasing to 1.42 trillion riyals by 2028.
Finance Minister Mohammed Al-Jadaan highlighted that the 2026 budget aims to reinforce Saudi Arabia's financial stability and secure the long-term sustainability of public finances while fostering economic growth. He also stressed the budget’s dedication to preserving development and social spending priorities, along with pushing forward structural reforms that improve both financial and economic efficiency and sustainability.
"In light of the continued global uncertainty during 2026 and over the medium term, as a result of the possibility of continued geopolitical tensions and increasing preventive policies, the government continues to monitor and analyze these risks, as a key element in enhancing the efficiency of financial planning, and proactively guide policies to address potential global economic challenges and reduce their negative impacts," the statement quoted him saying.
The report also noted that accelerating the implementation of several programs and projects has yielded tangible progress and increased fiscal flexibility. This adaptability allows the government to respond more effectively to changing economic conditions and adopt fiscal policies aimed at mitigating the economic cycle.
Since the launch of Saudi Vision 2030 in 2016, the kingdom has enacted structural reforms that have improved the business environment, empowered the private sector, and promoted sustainable development goals, according to the statement.
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