While Saudi Arabia will initially plan for a de-escalation and normalization of regional security conditions in 2027, the prospect of continued conflict will raise defense spending at the expense of prestige projects and entertainment and tourism initiatives, though core non-oil diversification efforts in the technology, minerals and finance sectors will likely remain intact. On Oct. 15, Saudi Arabia's Ministry of Finance announced a pre-budget statement for 2027, estimating a budgetary deficit of 4.9% of 2026 GDP ($65 billion), driven in part by the ongoing costs of the Iran war. The ministry also estimated that non-oil GDP growth will continue to expand in 2026 by 2.6%, a notable bright spot given the conflict, with a further rebound of 4.5% in 2027.