Saudi Arabia recorded a budget deficit of 94.8 billion riyals, equivalent to approximately 25.28 billion dollars, in the fourth quarter of 2025, according to official figures released by the finance ministry.

The shortfall reflects a combination of softer oil revenues and continued expenditure linked to the Kingdom’s long-term economic transformation agenda.

Total revenues for the quarter declined compared with earlier periods in the year, with oil income accounting for the majority of the decrease amid fluctuations in global energy markets and moderated crude prices.

Non-oil revenues remained resilient, supported by value-added tax receipts, customs duties and expanding activity across non-hydrocarbon sectors, underscoring the government’s diversification efforts.

Government spending remained elevated as authorities sustained capital investment and strategic development programmes aligned with Vision 2030. Outlays were directed toward infrastructure, tourism, industrial expansion and social services, as well as major projects designed to broaden the economic base and generate employment.

Despite the quarterly deficit, Saudi Arabia’s fiscal position remains anchored by comparatively low public debt levels relative to gross domestic product and substantial financial reserves.

The finance ministry reiterated its commitment to prudent debt management and to maintaining fiscal sustainability while supporting economic growth.

Analysts note that periodic deficits are consistent with the Kingdom’s counter-cyclical fiscal strategy, particularly during phases of oil price volatility.

They add that sustained growth in non-oil sectors — including logistics, entertainment, renewable energy and advanced manufacturing — has helped mitigate revenue fluctuations tied to hydrocarbons.

The government has previously projected manageable deficits over the medium term as it balances fiscal discipline with transformative investment.

Market participants will closely monitor forthcoming budget updates for indications of spending adjustments or revenue recalibration should energy prices shift further.

Saudi Arabia continues to emphasise that strategic investment remains central to accelerating diversification and strengthening long-term economic resilience, even as short-term fiscal balances fluctuate with global market conditions.