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2026-11-04 04:21:25
Saudi Arabia's fiscal deficit more than doubled in the third quarter of 2023 due to regional instability and reduced payments from Saudi Aramco. The regional turmoil stemming from the conflict between the US and Iran, coupled with reduced payments from the national oil giant Saudi Aramco, led to a significant decline in Saudi oil revenues. The fiscal deficit more than doubled to 84 billion riyals in the third quarter of 2023. Saudi oil revenues fell nearly 40% quarter-on-quarter to approximately 116 billion riyals, the lowest level since 2020. Non-oil revenues also declined by about 7%, while overall government spending decreased by 8%. Economists predict that with strengthening international crude oil prices and a potential increase in Saudi Aramco royalties, Saudi oil revenues will rebound somewhat in the fourth quarter. However, the fiscal deficit for that quarter will still be higher than previously expected, with the deficit as a percentage of GDP estimated to be between 5.6% and 6%.
