Saudi Arabia's fiscal deficit in the third quarter expanded more than double to 84 billion riyals

Due to regional turmoil and a reduction in related payments from Saudi Aramco, Saudi Arabia's fiscal deficit has more than doubled compared to before. Volatility caused by the conflict between the United States and Iran, combined with a decrease in payments from national oil giant Saudi Aramco, led to a sharp decline in Saudi oil revenues. In the third quarter of 2023, the fiscal deficit more than doubled to reach 84 billion riyals. During that quarter, Saudi Arabia's oil revenues fell nearly 40% quarter-on-quarter to around 116 billion riyals, marking the lowest level since 2020. At the same time, non-oil revenues also declined by about 7%, while total government spending decreased by 8%. Economists noted that as international crude oil prices are expected to strengthen in the future, coupled with an increase in Saudi Aramco's royalty fees, Saudi oil revenues will experience a certain rebound in the fourth quarter. However, the fiscal deficit for that quarter is still expected to exceed previous market expectations, with the deficit projected to account for between 5.6% and 6% of GDP.