Saudi Arabia approves $350bn budget as growth, diplomacy and innovation accelerate

Saudi Arabia is closing the year on a strong footing, with the approval of a robust 2026 budget, major diplomatic advances and accelerated progress across innovation and future industries.

The first half of December underscored the Kingdom’s focus on economic resilience, regional integration and long-term development.

At the centre of the period’s developments was the approval of the general state budget for fiscal year 2026 by the Cabinet, chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister.

Saudi budget

The budget allocates SR1.313tn ($350bn) in expenditures against estimated revenues of SR1.147tn ($306bn), reflecting an expansionary fiscal stance supported by solid economic fundamentals.

Economic growth remained strong, with GDP expanding by 4.8 per cent in the third quarter of 2025. This performance was driven by an 8.3 per cent increase in oil activities alongside sustained growth of 4.3 per cent in the non-oil economy, reinforcing the impact of ongoing diversification efforts.

On the diplomatic front, Saudi Arabia deepened both regional and international partnerships. A high-profile visit by the Amir of Qatar concluded with a joint statement highlighting 634 per cent growth in bilateral trade since 2021 and the signing of an agreement to develop a high-speed rail link connecting Riyadh and Doha.

At the same time, Saudi Arabia and Russia marked a new phase of cooperation by signing a mutual visa exemption agreement. The move made Russia the first country to conclude such an arrangement with the Kingdom for holders of regular passports.

The Kingdom also advanced its innovation and industrial localisation agenda. King Abdulaziz City for Science and Technology (KACST) and Lucid Group inaugurated the Middle East’s first Electric Vehicle Innovation Center in Riyadh, aimed at strengthening Saudi Arabia’s capabilities in future mobility and smart systems.

In healthcare innovation, King Faisal Specialist Hospital carried out a groundbreaking tumour resection using 3D-printing technology, further positioning the Kingdom as a regional hub for advanced medical innovation.

Saudi Arabia in numbers

• $90m: Financial support provided by Saudi Arabia to the State of Palestine
• SR73.1bn ($19.5bn): Total revenues of the nonprofit sector in 2024, marking a 22 per cent annual increase
• 151,000: Saudi citizens employed in the industrial and mining sector with Human Resources Development Fund support since 2020
• SR6bn ($1.6bn): Value of 45 agreements signed by the National Development Fund at the MOMENTUM 2025 conference
• 3m: Visitors to the Hail Region in the first half of 2025
• 8.22 per cent: Increase in transshipment containers at Saudi ports in November 2025
• 149 per cent: Self-sufficiency rate for shrimp in Saudi Arabia in 2024
• 25m: Safe man-hours achieved by Riyadh Airports Company, setting a new safety record
• $275m: Projected global market value by 2030 for a blue pigment discovered by KAUST scientists using algae and chocolate waste
• 14: Ambulances provided by KSrelief and the Organisation of Islamic Cooperation to the Kurdistan Region of Iraq
• Aa3: Credit rating reaffirmed for Saudi Arabia by Moody’s, with a stable outlook
• More than 10,000: Migratory waterbirds recorded in the Farasan Islands Reserve
• 8: Saudi cities now included in the UNESCO Global Network of Learning Cities
• $17.8m: Humanitarian aid pledged to Yemen and Bangladesh in a joint statement between KSrelief and the UK Foreign Office
• 197: Countries expected to participate in Expo 2030 Riyadh, projected to attract more than 42m visits

Together, these developments reflect a Kingdom that continues to expand its economic base, manage its fiscal future prudently and strengthen its global role through trade, innovation and humanitarian engagement.