Saudi Arabia recorded a budget deficit of 125.7 billion riyals (about 33.5 billion dollars) in the first quarter of 2026, marking its largest shortfall since 2018. The deficit nearly doubled compared with the same period last year, according to data from the Saudi Ministry of Finance cited by Bloomberg. The shortfall was attributed to the economic impact of the Hormuz Strait closure and accelerated government spending.

The ministry reported that to mitigate supply risks from the Hormuz disruption, the government advanced infrastructure and food import expenditures. It also invested heavily in expanding Red Sea coastal ports and increased spending on transport and logistics projects to strengthen alternative trade routes.

Analysts noted that amid regional tensions and uncertainty in energy transport, Saudi Arabia prioritized economic security through early preparedness, though this approach has immediately strained the national budget.