Saudi Gazette report

DAMMAM— Saudi Minister of Finance Mohammed Al-Jadaan announced that 2026 will mark the beginning of the "maximizing impact" phase of Vision 2030.

Addressing a press conference following the Cabinet's approval of the general budget for the fiscal year 2026 in Dammam on Tuesday, the minister said that the Kingdom has achieved historic and unprecedented growth in non-oil activities in recent years and is on track to reach the targets set in Vision 2030.

Al-Jadaan said the 2026 budget confirms the continuation of strategic spending on development projects in accordance with sectoral strategies and the Vision 2030 programs. He emphasized that the statements made by Crown Prince Mohammed bin Salman following the budget's approval underscore the priority given to the citizens in the government's plans.

The finance minister expressed his pride over the achievements of Saudi citizens in realizing the Vision plans. Realization of 93 percent of the Vision 2030 indicators are remarkable, he said while noting that the Vision's early years witnessed tremendous economic changes and reforms.

Al-Jadaan emphasized that the budget deficit is a "strategic and targeted" deficit that serves economic transformation projects. He reiterated the economic principle adopted by the government, saying: "I spoke last year, and I will briefly repeat, that the budget deficit varies depending on its uses, and the goal is for this deficit to generate a return greater than its cost."

He pointed out that despite the debt and the deficit, the rating agency raised the Kingdom's rating this year. He added that the government will continue spending as long as the economic return exceeds the cost of borrowing to finance the deficit. “The impact of spending will outweigh the cost of borrowing in the coming years, and the government will continue to increase investment spending as long as the returns are higher than the cost of borrowing,” he said.

In the context of these achievements, Al-Jadaan pointed out that non-oil exports have made a significant leap and are undergoing a major transformation, considering this "just the beginning," as the initial impact is starting to appear, even though the industrial cycle in general takes time.

He emphasized that the unprecedented growth in non-oil revenues will greatly enhance economic performance. "The government is currently striving to increase its revenues by strengthening the economy. If the economy grows, non-oil revenues will increase," he pointed out.

Al-Jadaan explained that the government is continuing its expansionary spending, the aim of which is to avoid following the economic cycle. He indicated that the decline in oil production necessitated stable spending to support the economy and send a clear message to investors.

He emphasized that the primary focus of spending remains on improving services provided to citizens. “The government is steadfast in its commitment to prioritizing citizens and their basic needs, with continued spending on education, health, and social services. Programs and projects aimed at raising the quality of government services and facilities and developing infrastructure across the Kingdom are also ongoing,” Al-Jadaan said while affirming that the government has successfully addressed the risks stemming from geopolitical changes and mitigated their economic and social impacts, thus demonstrating the strength and resilience of the Kingdom's economy.