Saudi Arabia endorses 2025 annual borrowing plan with $37 billion funding target

Saudi Arabia's Minister of Finance, Mohammed Abdullah Al-Jadaan, has approved the annual borrowing plan for the fiscal year 2025, which had previously been approved by the board of directors of the National Debt Management Center (NDMC). This plan outlines key developments in the public debt sector for 2024, initiatives aimed at strengthening the local debt market, and the financing strategy and its guiding principles for 2025.

Furthermore, the plan includes a schedule for the issuance of local Saudi Islamic bonds, denominated in Saudi Riyal, for the coming year. According to the plan, the estimated financing needs for 2025 are approximately 139 billion Saudi Riyal (approximately 37 billion US dollars).

This figure aims to address the projected budget deficit of 101 billion Saudi Riyal for the fiscal year 2025, as detailed in the Ministry of Finance's official budget statement, and takes into account the repayment of approximately 38 billion Saudi Riyal in maturing debt principal during the year.

To strengthen the Kingdom of Saudi Arabia's access to diverse debt markets and expand its investor base, Saudi Arabia is committed to continuing its efforts to diversify local and international financing sources in 2025, effectively meeting its financial needs. This will include issuing sovereign debt instruments at competitive rates, based on sound and comprehensive risk management practices. In addition, the Kingdom plans to capitalize on market opportunities by pursuing private transactions that stimulate economic growth, potentially including financing through export credit agencies, infrastructure development project financing, capital expenditure (CAPEX) financing, and exploring new markets and currencies based on current market conditions.

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