Saudi Arabia has approved the annual borrowing plan for the fiscal year 2025, after it was approved by the Board of Directors of the National Debt Management Center.
The plan included the most prominent developments in public debt for the year 2024, local debt market initiatives, in addition to the financing plan for the year 2025 and its guiding principles, with a review of the evaluation of the Saudi local sukuk program issuances in Saudi riyals for the year 2025.
139 billion riyals financing needs
According to the plan, the expected financing needs for the year 2025 will amount to about 139 billion Saudi riyals; to cover the expected deficit in the state’s general budget for the year 2025, which is estimated at about 101 billion Saudi riyals, according to the Ministry of Finance’s statement on the state’s general budget for the fiscal year 2025, and to pay the principal debt dues during the current year 2025, amounting to the equivalent of 38 billion Saudi riyals.
To enhance the sustainability of the Kingdom’s access to various debt markets and expand the investor base, Saudi Arabia aims in 2025 to continue diversifying local and international financing channels to cover financing needs with the required efficiency, by issuing sovereign debt instruments at a fair price within well-studied risk management frameworks and foundations, in addition to taking advantage of market opportunities to expand the implementation of special financing operations that contribute to enhancing economic growth, such as financing through export credit agencies, financing infrastructure development projects, financing capital expenditures, and studying available opportunities to enter new markets and currencies.
