Saudi Q2 Budget Deficit Narrows to SAR 34.3 Billion

Saudi Arabia recorded a budget deficit of SAR 34.289 billion in the second quarter of 2026, a sharp narrowing from the SAR 125.713 billion deficit registered in the first quarter,

Second-quarter revenue reached SAR 338.784 billion, while total expenditure stood at approximately SAR 373.073 billion, leaving the gap between the two at just over SAR 34 billion.

On a cumulative basis, the first-half 2026 deficit totaled SAR 160.002 billion. Combined revenue for the first six months came in at around SAR 599.6 billion, against total spending of roughly SAR 759.8 billion.

Deficit financed through borrowing

The first-half deficit was covered through borrowing, without drawing on government reserves — a signal that the state has maintained its financial buffers while continuing to fund public spending.

For residents and expats, the narrowing quarterly gap points to steadier public finances, which underpin ongoing spending on infrastructure, services, and the wider development projects tied to the Kingdom's economic agenda. Stable government finances also support the business environment in which many workers and companies operate across the Kingdom.

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