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The Finance Ministry’s quarterly budget performance report for the first quarter of 2026 placed non-oil revenues at SR116 billion ($30.9 billion), reflecting a 2 percent increase from the same period a year earlier. Total revenues reached SR261 billion, a 1 percent decline that the ministry attributed to a 3 percent drop in oil income to SR145 billion. Taxes on goods and services contributed the largest share of non-oil receipts at SR74.9 billion, the report showed, underscoring the impact of fiscal measures designed to broaden the revenue base beyond hydrocarbons.
According to the same ministry document, government expenditure rose 20 percent to SR387 billion during the quarter, driven by allocations across multiple sectors that produced a budget deficit of SR126 billion. The report noted that health and social development spending increased 12 percent to SR81 billion while infrastructure outlays advanced 26 percent. These figures align with the government’s strategy of front-loading investments to support long-term economic transformation.
The ministry’s assessment also highlighted several positive economic indicators alongside the fiscal results. Real GDP expanded 4.5 percent in 2025 and is projected to reach 4.6 percent in 2026, the report stated, with non-oil activities continuing to lead the expansion. Consumer prices rose a moderate 1.8 percent while the Purchasing Managers’ Index stood at 53.7, signaling sustained growth in the non-oil private sector.
Employment data within the report showed that 139,500 additional Saudi nationals joined the private sector workforce during the period, contributing to a 5.8 percent rise in overall Saudi employment. E-commerce transactions surged 42.6 percent and private-sector credit grew 8.8 percent, the ministry figures indicated. Such metrics illustrate the broadening base of domestic economic activity beyond traditional revenue streams.
Saudi Arabian Monetary Authority data referenced in related analyses placed the kingdom’s foreign reserves at SR1.786 trillion at the end of the quarter, a 10 percent increase that provides a buffer for continued spending. The Vision 2030 2025 Annual Report released the previous month found that non-oil sectors now account for 55 percent of real GDP, up significantly from levels recorded at the program’s launch. This shift reflects a decade of reforms that have doubled non-oil budget revenues since 2017 according to the Finance Ministry’s own historical compilations.
A forward-looking budget statement prepared by the ministry in late 2025 projected total revenues of SR1,147 billion for the full year of 2026, representing 5.1 percent growth and a non-oil share approaching 46 percent. KPMG’s review of that statement noted that robust non-oil GDP expansion and ongoing fiscal adjustments are expected to support this trajectory. The first-quarter outcome therefore offers an early signal of how these longer-term targets are progressing amid fluctuating energy prices.
