Saudi Arabia Sets $371B Budget Plan for 2027

Saudi Arabia has forecast government spending of SAR 1.392 trillion ($371B) in 2027, with revenues estimated at SAR 1.202 trillion ($320.5B), resulting in a projected budget deficit of around 3.6 per cent of GDP.

The Kingdom expects real GDP to contract by 3.6 per cent in 2026, largely due to a projected 21.8 per cent decline in oil activity. Non-oil activity is forecast to grow by 3.2 per cent, helping offset weaker performance in the oil sector.

Saudi Arabia expects economic activity to strengthen in 2027 as oil production gradually recovers. The government has projected real GDP growth of 4.5 per cent next year, supported by both the oil and non-oil sectors.

Non-oil activity grew 1.8 per cent in the first half of 2026, lifting its contribution to GDP to a record 57.3 per cent. Non-oil revenues have also increased from SAR 166B in 2015 to SAR 505B in 2025.

The government expects spending to remain focused on economic transformation, infrastructure and strategic development projects as the Kingdom continues implementing its Vision 2030 agenda.

Saudi Arabia plans to continue domestic and international borrowing in 2027 through bonds, sukuk and loans. The government will also use project, infrastructure and export credit financing to support priority investments.

The Kingdom’s medium-term fiscal strategy is aimed at maintaining spending on development priorities while managing public finances and supporting sustainable economic growth.