As Saudi Arabia approves its state budget for 2026, the country anticipates a narrowing fiscal deficit as they prioritize industrial and logistics sectors in an effort to increase non-oil-based revenue. The country is projecting a deficit of 165 billion riyals ($44 billion), about 3.3% of gross domestic product (GDP).

While sizable, the deficit is down from the estimated deficit this year, with lower oil prices and production weighing on revenue, causing spending to exceed the budgeted level by 4%, per Reuters.

Saudi Arabia is more than halfway through the Vision 2030 blueprint for economic transformation introduced in 2016, which calls for hundreds of billions in government investments to wean the country’s economy off its dependence on hydrocarbon revenues. The budget marks the third phase of the project, according to Reuters, with a shift in focus from economic reforms to maximizing their impact.

“Our level of spending in the last three budget cycles has been consistent, but now it is about what we are spending on, rather than how much we are spending,” said Saudi Arabian Finance Minister Mohammed Al Jadaan, per Reuters.

This year the nation saw positive economic growth, with the economy growing by 5% in the third quarter, per Reuters, driven by oil activities expanding by 8.2% year-over-year as well as 4.5% growth in non-oil activity and 1.8% growth in government activity. Saudi Arabia’s GDP increased 1.4% in the third quarter from the previous quarter, likely driven by a 3.1% increase in oil activities.

The country’s expected economic growth is boosted by the gradual unwinding of oil production cuts by the OPEC+ group of nations. After curbing production over several years to support the oil market, the group started easing those curbs in April, according to Reuters.

Saudi Arabia, the world’s largest oil exporter, reduced the price of its crude oil for customers in Asia, according to the Wall Street Journal, which reflects caution after OPEC+ announced plans to pause output increases in early 2026.

Of the credit managers with recent sales to Saudi Arabia, all of them are selling to existing customers, according to FCIB’s Credit and Collections Survey. About 16% of credit managers with customers in Saudi Arabia do not extend credit to said customers. Of those extending credit in the country, 8% offer 1-30-day terms, 33% offer 31-60-day terms, 16% offer 61-90-day terms and 25% offer over 90-day terms. Credit managers find that customers in Saudi Arabia are 66 days beyond terms on average.

The majority of credit managers find that payment delays are staying the same, with a slight 30% seeing an increase in delays. Of those experiencing delays, the primary causes are cultural norms and customs (60%), billing disputes (40%), customer payment policy (40%) and other disputes (30%).

“Due to global economic struggles, there is more and more AI fraud,” one respondent wrote. “Know who you are selling to and do your due diligence.”

“Saudi Arabian customers need constant reminders, phone calls and sometimes visits,” another respondent wrote. “Continue to stay in contact with the customer and if needed block orders.”