Saudi budget spending rises 20 percent to 387 billion riyals in Q1

Saudi Arabia’s first-quarter 2026 budget results showed revenues of around 261 billion riyals ($69.6 billion) on Tuesday, down 1 percent compared with the same period in 2025, while spending rose to 387 billion riyals ($103.2 billion), up 20 percent, driven by accelerated implementation of national strategies and development projects aimed at economic diversification.

According to official data, the budget deficit reached about 126 billion riyals ($33.6 billion), amid a notable increase in government spending alongside relatively stable revenues.

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Oil revenues declined 3 percent to around 145 billion riyals ($38.7 billion), while non-oil revenues rose 2 percent to 116 billion riyals ($30.9 billion), highlighting continued improvement in non-oil sources of income.

Sector-wise, spending on social benefits increased slightly to more than 31 billion riyals ($8.3 billion) (+2 percent), while health and social development spending jumped 12 percent to about 81 billion riyals ($21.6 billion). Expenditure on infrastructure and transport rose 26 percent to 12 billion riyals ($3.2 billion), supporting the Kingdom’s logistics transformation goals.

Economic indicators pointed to continued positive momentum, with real GDP growth reaching 4.5 percent in 2025 and projected to rise to 4.6 percent in 2026. Inflation remained stable at 1.8 percent in the first quarter of 2026.

Saudi Arabia recorded a merchandise trade surplus of 36.9 billion riyals ($9.8 billion) in January and February 2026, while non-oil exports surged 17.5 percent to 63.3 billion riyals ($16.9 billion).

Labor market

The number of Saudis employed in the private sector increased by about 139,500 to reach 2.5 million, marking 5.8 percent growth. Point-of-sale transactions rose 4.4 percent to 189.7 billion riyals ($50.6 billion), while e-commerce activity jumped 42.6 percent.

The Purchasing Managers’ Index stood at 53.7, indicating continued expansion in economic activity. Industrial production rose 9.8 percent, bank lending to the private sector grew 8.8 percent, and foreign reserves increased 10 percent to 1.786 trillion riyals ($476.3 billion).

Meanwhile, the real estate price index declined 1.6 percent, driven by a drop in the residential sector, signaling relative stability in the property market.

Read more: Saudi Arabia approves budget for 2026