Saudi Arabia's 2027 Budget Approves $371B Spending
The Saudi Ministry of Finance has announced the budget for 2027, expecting expenditures of $371 billion and a deficit estimated at 3.6% of the gross domestic product. This comes amid ongoing structural reforms and economic diversification strategies that have led to an increase in non-oil revenues from $44 billion in 2015 to $135 billion in 2025. Despite geopolitical challenges, the projected growth remains subdued at 3.6%, with a significant decline in oil activity by 21.8%, while non-oil activities continued to grow at 3.2%, now constituting 57.3% of the GDP. The government focuses on domestic and international financing, issuing bonds and sukuk, while maintaining an appropriate level of public debt to enhance financial sustainability and support long-term economic growth.
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