Saudi Arabia unveils its 2026 budget on Tuesday, with investors and businesses watching to see how spending and borrowing plans will impact the economy at a time of weaker oil prices.
The kingdom has already said it expects a wider budget deficit in 2026 than initially forecast, after lowering revenue projections and boosting spending. The budget will also be closely watched for indications about the direction Saudi Arabia, the swing producer in the OPEC+ group, expects oil revenues to take.
Government spending, either directly through the finance ministry or indirectly through its giant Public Investment Fund, is still a key driver for the economy.
Yet lower oil revenues and the spending commitments that come with hosting global events like Expo 2030 and the men’s soccer World Cup in 2034 have led to cutbacks at some megaprojects, including NEOM on the northwest coast.