Saudi Budget Deficit Shrinks by 73% on Oil Price Surge

Saudi Arabia's budget deficit has significantly narrowed in the second quarter of 2026 due to higher oil prices. The country reported a $9.1 billion shortfall for April, May, and June, which is a 72.7% decrease from the previous quarter's deficit of $33.5 billion.

The total budget deficit for the first half of the year stands at $42.6 billion (160 billion Saudi riyals), falling short of the projected $44 billion (165 billion Saudi riyals) for the full current year. The shortfall was entirely funded through borrowing.