Saudi budget deficit more than doubles on war and Aramco fees

Saudi Arabia's fiscal deficit more than doubled in the third quarter to 840 riyals, as turmoil triggered by the U.S.-Iran war and reduced payments by state oil giant Saudi Aramco caused the kingdom's oil revenue to plunge. Oil revenue plummeted nearly 40% from the previous quarter to about 116 billion riyals, the lowest level since 2020, while non-oil revenue fell about 7% and overall spending dropped 8%. Economists expect oil revenue to rebound in the fourth quarter due to stronger crude prices and higher Aramco royalty payments, but they forecast the fiscal deficit will be larger than previously expected, estimated at between 5.6% and 6% of GDP.