RIYADH, Dec 21 (Reuters) - Saudi Arabia will announce its 2016 budget next Monday, the Saudi-owned al-Arabiya television channel, which is close to the ruling family of the world's top oil exporter, reported on Monday citing unnamed sources.

The 2016 budget is being closely watched both inside Saudi Arabia and by world oil markets because it will shed light on how the kingdom plans to approach expected low crude prices next year, with widespread expectations of big spending cuts.

(Reporting By Ali Abdelatti; Writing by Angus McDowall; Editing by Hugh Lawson) ((angus.mcdowall@thomsonreuters.com; Reuters Messaging: angus.mcdowall.thomsonreuters.com@reuters.net))