Saudi’s budget deficit shrinks by three-quarters on oil price surge
Saudi Arabia’s budget deficit narrowed significantly in the second quarter of 2026 on the back of higher oil prices despite the US-Iran conflict having contracted the economy.
The kingdom reported a budget deficit of $9.1 billion for April, May and June, falling 72.7% from a $33.5 billion shortfall logged in the previous quarter.
This drove the total deficit for the first half of the year to $42.6 billion (160 billion Saudi riyals), shy of $44 billion (165 billion Saudi riyals) projected for the full current year. The deficit was entirely funded via borrowing.
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