Saudi Budget Defies Oil Slump With More Spending and More Debt
Affected assets and topics
Why it matters
Saudi Arabia's 2026 budget outlines increased spending and borrowing, despite low oil prices, with a projected deficit of 3.3% of GDP.
Article tone
Expected market reaction
Market impact analysis based on bearish sentiment with 68% confidence.
Evidence trail
Evidence
AI provenance
Technical identifiers
- Provider tag
- groq-llama-3.1-8b-instant
- Analysis version
- groq-llama-3.1-8b-instant
- Article id
- 17460
Original source
Saudi Arabia is doing something that might seem confusing; it’s spending more, borrowing more, and pushing ahead with massive economic projects, even though oil prices are far too low to balance the budget. According to the new 2026 budget outline released on Tuesday, Riyadh plans to spend 1.3 trillion riyals (about $350 billion) next year and keep it at roughly that level through 2027. That kind of spending locks in a deficit of about 3.3% of GDP in 2026. But here’s the part many outsiders miss: in Saudi Arabia, deficits are not viewed…
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Original article published by OilPrice.com on December 2, 2025. Analysis and insights provided by AnalystMarkets AI.