Saudi Arabia's fiscal deficit in the third quarter more than doubled to 840 riyals due to the turmoil caused by the war between the US and Iran and the reduction in fees paid by national oil giant Saudi Aramco, which led to a sharp drop in the kingdom's oil revenue. Oil revenues plummeted nearly 40% from the previous quarter to about 116 billion riyals, the lowest level since 2020; non-oil revenues fell by about 7%, while overall spending fell 8%. Economists expect oil revenues to rebound in the fourth quarter due to stronger crude oil prices and an increase in Aramco royalties, but they predict that the fiscal deficit will be larger than previously anticipated, accounting for an estimated 5.6%-6% of GDP.

Saudi Arabia's fiscal deficit in the third quarter more than doubled to 840 riyals due to the turmoil caused by the war between the US and Iran and the reduction in fees paid by national oil giant Saudi Aramco, which led to a sharp drop in the kingdom's oil revenue. Oil revenues plummeted nearly 40% from the previous quarter to about 116 billion riyals, the lowest level since 2020; non-oil revenues fell by about 7%, while overall spending fell 8%. Economists expect oil revenues to rebound in the fourth quarter due to stronger crude oil prices and an increase in Aramco royalties, but they predict that the fiscal deficit will be larger than previously anticipated, accounting for an estimated 5.6%-6% of GDP.