The Crown Prince approves the 2026 budget and affirms the role of the Public Investment Fund
His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister – may God protect him – chaired the Cabinet session held today, Tuesday, which witnessed pivotal decisions related to the future of the national economy, as the Council approved the state’s general budget for the next fiscal year 1447/1448 AH (2026 AD).
In a statement reflecting the Kingdom's strategic direction, His Royal Highness the Crown Prince affirmed that the Public Investment Fund will continue its leading role as an engine for economic development, a key supporter in achieving the goals of the Kingdom's Vision 2030. His Highness indicated that the Fund is continuing to develop strategic and promising sectors, and to build global economic partnerships that complement the tireless efforts to diversify the local economy, which directly contributes to strengthening the national economy and the long-term sustainability of public finances.
Public Investment Fund: The Engine of Vision 2030
The Crown Prince's remarks underscore the pivotal role of the Public Investment Fund (PIF) in the Saudi economy. Since the launch of Vision 2030 in 2016, the Fund has transformed from a traditional investment vehicle into one of the world's largest and most influential sovereign wealth funds. It operates according to an ambitious strategy aimed at localizing cutting-edge technologies and launching new sectors previously nonexistent in the Kingdom, such as luxury tourism, entertainment, renewable energy, defense industries, and electric vehicles.
Integration between the general budget and development funds
His Royal Highness the Crown Prince clarified a crucial point regarding financial integration in the Kingdom, highlighting the role of the National Development Fund and its affiliated development funds. This role is not separate from the state's general budget, but rather a fundamental complement to it in stimulating economic growth. While the general budget focuses on operational expenditures, essential government projects, and public services, the development and investment funds inject liquidity into large capital projects and finance the private sector, creating an integrated economic cycle that accelerates the pace of economic diversification away from total dependence on oil.
Implications of approving the 2026 budget early
The approval of the 2026 fiscal year budget reflects the stability of the Kingdom's financial planning and the clarity of its future vision. This measure enhances the confidence of local and international investors in the Saudi economy, providing a clear roadmap for government spending and targeted projects. It also underscores the Kingdom's commitment to fiscal discipline and to advancing structural reforms that ensure efficient spending and maximize economic returns.
Expected economic impact
These trends are expected to create thousands of job opportunities for citizens and increase the non-oil sector's contribution to GDP. The Public Investment Fund's continued domestic investment will ensure the continued progress of mega-projects such as NEOM, the Red Sea Project, and Qiddiya, which are becoming global investment and tourism destinations, further solidifying the Kingdom's position as a leading global investment powerhouse.
