Saudi Arabia Sees 12.8% GDP Growth in 2027 Amid Budget Deficit
Saudi Arabia has forecasted a significant economic rebound for 2027, expecting its real GDP to grow by 12.8% after a projected 3.6% contraction in 2026 due to lower oil production.
The government's preliminary budget plan for 2027 allocates 1.392 trillion Saudi riyals ($371 billion) for spending and projects revenue at 1.202 trillion riyals ($320.5 billion), resulting in a deficit of approximately 190 billion riyals, or $50.5 billion.
The budget plan also includes three revenue scenarios, with the baseline scenario predicting a deficit of around 191 billion riyals and receipts reaching 1.202 trillion riyals. If revenue increases to 1.261 trillion riyals, the deficit could decrease to 132 billion, while lower revenue would result in a deficit of 259 billion.
Economists attribute Saudi Arabia's growth in non-oil revenue to private-sector expansion and investment in infrastructure, tourism, digital transformation, industry, and technology, which has increased from approximately 166 billion riyals in 2015 to 505 billion riyals in 2025. However, the country remains vulnerable to fluctuations in oil prices and production volumes.