Saudi Arabia Projects 3.6% Fiscal Deficit for 2027

Saudi Arabia has projected a fiscal deficit of 3.6% of GDP in 2027, according to its Finance Ministry.

The ministry estimated total expenditure at SR1.39 trillion ($370.21 billion) and revenue at SR1.20 trillion, with revenues expected to increase to SR1.351 trillion by 2029 and expenditure reaching SR1.544 trillion over the same period.

The government attributed its non-oil economy's resilience to reforms introduced under Vision 2030, which have diversified economic activity, improved the business environment, and expanded the private sector's contribution to growth.

Saudi Arabia plans to continue borrowing in domestic and international markets in 2027, with financing including bonds, sukuk, and loans, alongside alternative funding channels such as project and infrastructure financing and export credit agencies.