Saudi Arabia seeks $58bn to meet 2026 budget deficit

Saudi Arabia has approved its 2026 borrowing plan, with projected funding increasing almost 56 percent from 2025 to SAR217 billion ($58 billion), according to the finance ministry.

This amount is slated to cover an anticipated budget deficit of SAR165 billion or 3.3 percent of gross domestic product, for the year, as outlined in the ministry’s budget statement, the state-run Saudi Press Agency said.

The funding will also be used to repay principal on debt maturing during the year, amounting to SAR52 billion.

Riyadh estimated funding of SAR139 billion in 2025 to cover its potential budget deficit.

In December the government narrowed its 2026 deficit forecast from an estimated SAR245 billion, or 5.3 percent of GDP in 2025. In the same month local investment house Jadwa Investment said the country’s budget deficit is projected to narrow to 4.5 percent of GDP in 2026.

The deficit, if financed through borrowing, is likely to increase the government’s debt to just over one third of GDP.

“The kingdom aims to maintain debt sustainability and diversify funding sources between domestic and international markets through public and private channels, by issuing bonds, sukuk, and loans at fair cost,” the statement said.

The ministry will also look at alternative government funding through project and infrastructure financing, as well as export credit agencies, during 2026 and over the medium term.

Last week the National Debt Management Center (NDMC) secured $13 billion through a seven-year syndicated loan to help finance power, water and public utilities projects.