Saudi Arabia Approves $58B Borrowing Plan
Saudi Arabia’s Finance Ministry has approved a 2026 borrowing plan with financing needs of about $58 billion to support the government’s budget and debt obligations. The plan was endorsed by Finance Minister Mohammed Al-Jadaan and outlines how the kingdom will secure funds through domestic and international markets and alternative financing channels.
Funding Purpose and Budget Gap
The financing is intended to cover a projected budget deficit and the repayment of maturing debt during the 2026 fiscal year. Officials indicated that the total projected financing requirement is around SAR 217 billion (about $57.9 billion), with the funds covering both operational shortfalls and debt repayments scheduled for the year.
Sources of Financing
Under the borrowing strategy, Saudi Arabia plans to tap a mix of funding sources. This includes issuances in domestic debt markets, international borrowings, and private sector financing, such as bonds, sukuk, and project-linked instruments. The approach is designed to broaden the investor base and maintain sustainable public finances.
Economic Context
The borrowing plan aligns with Saudi Arabia’s Vision 2030 economic strategy aimed at diversifying the economy beyond oil revenue. The strategy emphasises developing sectors such as logistics, tourism, and infrastructure, while ensuring fiscal stability amid fluctuating oil prices.
Market and Policy Outlook
Officials said the financing plan will help preserve debt sustainability and strengthen domestic capital markets. The government also plans to expand alternative financing tools, including project and infrastructure funding and the use of export credit agencies, to support broader economic goals.
