Prime Highlights
- Saudi Arabia’s 2026 borrowing plan focuses on keeping debt under control while raising funds from local and international sources through bonds, sukuk, and loans.
- The plan also emphasizes alternative funding options, including project financing, infrastructure investments, and export credit agencies.
Key Facts
- The Kingdom’s projected funding needs for 2026 are around SR217 billion ($57.8 billion), covering a budget deficit of SR165 billion and debt repayments of SR52 billion.
- Private markets are expected to provide up to 50% of the funding mix, supporting sustainable and diversified access to debt markets.
Background:
Saudi Arabia’s Ministry of Finance, led by Minister Mohammed Al-Jadaan, has approved the Kingdom’s annual borrowing plan for the 2026 fiscal year, following endorsement from the National Debt Management Center (NDMC) board, the Saudi Press Agency reported on Saturday.
The plan sets out key developments in public debt during 2025 and outlines the funding strategy and guiding principles for 2026. The plan also provides the schedule for issuing local Saudi Sukuk in riyals.
For 2026, the Kingdom expects to need around SR217 billion ($57.8 billion) to cover a budget deficit of SR165 billion and debt repayments of about SR52 billion.
The Ministry of Finance emphasized that the plan is designed to maintain debt sustainability while diversifying funding sources across domestic and international markets. The government will raise funds by issuing bonds, sukuk, and loans at a fair cost while carefully managing risks.
The plan also focuses on using alternative funding, like project and infrastructure financing and export credit agencies.
NDMC added that the private market is expected to contribute up to 50 percent of the funding mix, through instruments such as project infrastructure financing and export credit agencies. The center said that private financing will be used carefully, following the Kingdom’s medium-term debt strategy, to ensure stable and diversified access to debt markets.
This shows Saudi Arabia’s commitment to stable growth and strong finances in the Gulf.
