[6] The economy of Saudi Arabia also suffered a heavy impact; a budget deficit of 9 billion US dollars was reported in the first quarter of 2020 caused by the decline in oil prices and the economic effects of the pandemic.

[7][8] Several measures were taken to help stimulate the economy, including increasing the value-added tax from 5% to 15%, effective 1 July,[7][8] and cutting spending by 100 billion riyals (US$26,600,000,000).

The change in figures resulted following the spike in non-oil revenue, which kicked off a continued fall in oil income.

The government estimated that the economy would shrink by a further 3.8% in the remaining months of 2020 due to the impact of the coronavirus crisis on the global demand for crude oil.

[1] On 12 January 2020, the World Health Organization (WHO) confirmed that a novel coronavirus was the cause of a respiratory illness in a group of people in the city of Wuhan, Hubei in China which was reported to the WHO on 31 December 2019.

On 5 March, further precautionary measures were taken regarding the safety of the Islamic holy sites, including temporary daily closure of the Great Mosque for sterilization purposes.

On 20 March, Saudi Arabia suspended entry and praying to the general public at the two Holy Mosques in Mecca and Medina to limit the spread of the coronavirus.

[46] On 28 February, the Minister of Foreign Affairs of Saudi Arabia announced the temporary suspension of entry for Gulf Cooperation Council (GCC) citizens to Makkah and Madinah.

[48] On 20 March, The Ministry of Interior suspended domestic flights, trains, buses and taxis for 14 days in a heightened effort to stop the spread of the COVID-19.

[49] On 8 March, the Saudi Arabian government announced that it was temporarily halting all transport in and out of the Qatif Governorate, though residents of the area would be permitted to enter the city.

On 14 March, the Saudi Ministry of Municipal and Rural Affairs announced that they would be closing all amusement parks and entertainment zones in malls.

[65] On March 7, 2021, restaurants, cafes, cinemas, gyms and sport centers will reopen in Saudi Arabia, but weddings and all social events and parties are still not allowed until further notice.

[7][8] Official data reported on 30 September 2020 by Reuters showed that Saudi Arabia's economy declined by 7% in both the oil and non-oil sectors in the second quarter following the coronavirus pandemic.

Furthermore, oil prices are significantly lower than the $76 a barrel the International Monetary Fund (IMF) says Saudi Arabia requires in order to balance its budget this year.

[71] On 29 December 2020, the Kingdom's Health Minister Tawfiq al-Rabiah, told Al Arabiya, coronavirus vaccines are set to reach all regions of Saudi Arabia within three weeks.

[78] In May 2021, Saudi authorities said that, starting August 2021, attending events, whether social, scientific, economic cultural or other, and entering any government or private establishment will require having the COVID-19 immunization.