Saudi Arabia Projects 3.6% Budget Deficit for 2027

Saudi Arabia's Ministry of Finance announced preliminary 2027 budget estimates on September 30, projecting expenditure of SAR 1,392 billion, revenue of SAR 1,202 billion and a deficit of 3.6% of GDP. The ministry estimated that real GDP would decline 3.6% in 2026, with oil activities falling 21.8% and non-oil activities growing 3.2%. It said domestic and international borrowing would continue through bonds, sukuk and loans, alongside alternative financing for projects and infrastructure. Finance Minister Mohammed Aljadaan said the estimates reflected continuing global uncertainty and accelerating geopolitical developments. The figures are preliminary estimates rather than the final approved budget.