Saudi Arabia's budget deficit hits seven-quarter low due to oil revenue
Saudi Arabia announced a fiscal deficit of 34.3 billion riyals in the second quarter of 2026, the lowest since the third quarter of 2024. Revenues rose to 338.9 billion riyals, an increase of 12% year-on-year, with oil revenues leading at 185.1 billion riyals (+22%), supported by flexible oil supplies and multiple revenue streams despite geopolitical challenges. Conversely, expenditures increased by 11% to reach 373.1 billion riyals, with capital spending rising 16% to 46.2 billion riyals. This has positively impacted economic growth and efforts to improve infrastructure and strengthen supply chains. The government continues to manage the deficit through various financing tools and maintains public debt sustainability at 32.7% of GDP, even as external debt grew to 624.9 billion riyals domestically and internationally.
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