Overview
- The finance ministry reported a 125.7 billion riyal ($33.5bn) shortfall for the first quarter, the largest quarterly deficit since 2018.
- Total spending rose about 20% year on year to 386.7 billion riyals as oil revenue slipped 3% to 144.7 billion riyals, with outsized increases in project, military, infrastructure and transport outlays.
- A multi‑week halt to shipping through the Strait of Hormuz reduced crude sales, while exports were rerouted to the Red Sea via the East‑West Pipeline to blunt the shock.
- Debt climbed as the government drew on Saudi lenders and pre‑arranged funding, and the debt office said it would turn to local markets and private deals if extra financing is needed.
- GDP growth slowed to 2.8% year on year in the quarter, and uncertainty over near‑term oil flows persisted after the US paused a short‑lived operation to reopen the strait.