Saudi Arabia's Non-Oil Revenues Climb 2% in Q1 Amid Increasing Government Spending
Budget performance report shows non-oil revenues up, government spending on the rise.
Saudi Arabia saw its non-oil revenues increase by 2 percent to reach SR116 billion ($30.9 billion) in the first quarter of 2026, according to the Ministry of Finance's Budget Performance Report covering the period from January 1 to March 31.
This rise reflects continued efforts by the Kingdom to diversify its fiscal base beyond crude oil revenues.
Despite a budget deficit of SR126 billion, which was pushed higher by increased government spending, shipments including re-exports surged by 17.5 percent in January and February to reach SR63.3 billion.
The merchandise trade balance remained in surplus at SR36.9 billion for the same period.
Total expenditures reached approximately SR387 billion in Q1 of 2026, up 20 percent compared with the first quarter of 2025 due to the implementation of national strategies and projects aimed at economic diversification.
Total revenues were at SR261 billion, a slight 1 percent dip from the same period in 2025.
Oil revenues fell by 3 percent to reach SR145 billion as global energy markets softened.
Real gross domestic product expanded by 4.5 percent in full-year 2025, with oil sector activity up 5.7 percent and non-oil activity at 4.9 percent.
Growth of approximately 4.6 percent is projected for 2026.
The deficit reported in the first quarter can be attributed to a proactive government spending policy aimed at financing projects that will generate sustainable future revenues, according to economist Jassem Ajaka.
He emphasized that all measures taken are part of Vision 2030's carefully laid-out plans and calculated spending.
Inflation remained moderate with a Consumer Price Index increase of around 1.8 percent in Q1 2026.
The Purchasing Managers' Index averaged 53.7 points, indicating sustained momentum in the non-oil private sector.
Industrial production rose by 9.8 percent year on year in January and February.
Health and social development spending increased by 12 percent to reach SR81 billion while infrastructure and transportation outlays climbed 26 percent to SR12 billion, reflecting Saudi Arabia's goal of becoming a global logistics hub.
E-commerce sales surged by 42.6 percent, showcasing rapid digital adoption.
Private-sector employment of Saudi nationals rose by approximately 139,500 workers in the final quarter of 2025, increasing the total to about 2.5 million.
The government has linked real estate price adjustments to structural reforms such as the vacant land fee intended to boost housing supply.
The general property price index fell by 1.6 percent and residential prices decreased by 3.6 percent.
This rise reflects continued efforts by the Kingdom to diversify its fiscal base beyond crude oil revenues.
Despite a budget deficit of SR126 billion, which was pushed higher by increased government spending, shipments including re-exports surged by 17.5 percent in January and February to reach SR63.3 billion.
The merchandise trade balance remained in surplus at SR36.9 billion for the same period.
Total expenditures reached approximately SR387 billion in Q1 of 2026, up 20 percent compared with the first quarter of 2025 due to the implementation of national strategies and projects aimed at economic diversification.
Total revenues were at SR261 billion, a slight 1 percent dip from the same period in 2025.
Oil revenues fell by 3 percent to reach SR145 billion as global energy markets softened.
Real gross domestic product expanded by 4.5 percent in full-year 2025, with oil sector activity up 5.7 percent and non-oil activity at 4.9 percent.
Growth of approximately 4.6 percent is projected for 2026.
The deficit reported in the first quarter can be attributed to a proactive government spending policy aimed at financing projects that will generate sustainable future revenues, according to economist Jassem Ajaka.
He emphasized that all measures taken are part of Vision 2030's carefully laid-out plans and calculated spending.
Inflation remained moderate with a Consumer Price Index increase of around 1.8 percent in Q1 2026.
The Purchasing Managers' Index averaged 53.7 points, indicating sustained momentum in the non-oil private sector.
Industrial production rose by 9.8 percent year on year in January and February.
Health and social development spending increased by 12 percent to reach SR81 billion while infrastructure and transportation outlays climbed 26 percent to SR12 billion, reflecting Saudi Arabia's goal of becoming a global logistics hub.
E-commerce sales surged by 42.6 percent, showcasing rapid digital adoption.
Private-sector employment of Saudi nationals rose by approximately 139,500 workers in the final quarter of 2025, increasing the total to about 2.5 million.
The government has linked real estate price adjustments to structural reforms such as the vacant land fee intended to boost housing supply.
The general property price index fell by 1.6 percent and residential prices decreased by 3.6 percent.
