Saudi budget deficit rises to SAR 84.3 billion in third quarter

Last updated Nov 3, 2026 8:30 PM

RAYIDH, Nov. 03 (YPA) – Saudi Arabia has recorded a budget deficit of SAR 84.3 billion in the third quarter of this year, compared with SAR 34.3 billion in the second quarter, according to figures released by the Saudi Ministry of Finance on Tuesday.

Total government expenditure through the third quarter of 2026 reached approximately SAR 1,103.2 billion, up 8% from SAR 1,016.8 billion during the same period in 2025.

The cumulative budget deficit reached approximately SAR 244.3 billion by the end of the third quarter.

Oil revenues during the first nine months of 2026 stood at around SAR 446.3 billion, down 1% from SAR 452.4 billion in the corresponding period of 2025.

Military spending reached approximately SAR 187.5 billion through the third quarter of 2026, an increase of 9% compared with SAR 172.7 billion during the same period last year.

The sharp rise in the budget deficit, which reached SAR 84.3 billion in the third quarter, reinforces estimates of the heavy financial cost of military escalation in the region, particularly against Yemen.

Amid the continuation of the naval and air blockade, alongside attacks by Sanaa forces, the impact is said to extend beyond declining oil and non-oil revenues to include higher operational and defense spending and increased costs of securing supply chains.

These mounting pressures, the report argues, highlight the structural challenges facing the Saudi economy in managing its cumulative deficit and securing the liquidity needed to meet government obligations in the coming stages.

The record deficit coincided with an expansion of the naval and air blockade, which the report says has affected key pillars of the Saudi economy.

It describes attacks on vital facilities belonging to Saudi Aramco as a direct blow to the kingdom’s economic center of gravity, increasing maintenance and insurance costs and undermining the stability of oil exports to global markets.

At sea, the blockade and escalating attacks on vessels linked to Saudi Arabia or bound for the kingdom through the Bab al-Mandab Strait have reportedly compounded the economic burden, including higher logistical costs and insurance premiums on oil shipments and commercial goods moving to and from Saudi ports.