Saudi Arabia Sees 2027 Fiscal Deficit at $50.87 Billion

Saudi Arabia has estimated its fiscal deficit for 2027 to be approximately $50.87 billion, or 3.6% of the country's gross domestic product (GDP). According to a pre-budget statement by the finance ministry, total expenditure is projected at $370.21 billion in 2027, while revenue is expected to reach $319.61 billion.

The 2026 deficit is estimated at 245 billion riyals, exceeding the 165 billion riyals projected in last year's budget. Saudi Arabia forecasts real GDP growth of 12.8% in 2027, following a decline of 3.6% in 2026 due to a 21.8% drop in oil activities amid geopolitical developments in the region.

The finance ministry stated that the expected decline in real GDP in 2026 was caused by disruptions to energy shipments from the Gulf and pressure from Iran-backed Houthis, who have fired missiles and drones at Saudi Arabia.