Saudi Arabia has unveiled a bold move to secure its financial footing in 2025, approving a borrowing plan worth $37 billion. The Kingdom’s Finance Ministry confirmed this decision on Sunday, setting in motion a strategy to address potential budgetary gaps in the coming year. This plan, totaling 139 billion Saudi riyals, was greenlit by the National Debt Management Center to manage anticipated shortfalls.
Back in November, the Ministry projected a deficit of about 101 billion riyals ($26.9 billion) for 2025, alongside a significant portion of debt repayments, totaling approximately 38 billion riyals ($10.1 billion). To mitigate these challenges, Saudi Arabia is looking beyond traditional financing methods, seeking a mix of local and global channels to raise the necessary funds.
The Kingdom’s goal is not only to cover the expected budgetary gaps but also to do so in a cost-effective manner. By issuing sovereign debt instruments, Saudi Arabia hopes to secure capital at a reasonable price while steering clear of excessive financial strain.
This borrowing plan represents a strategic step in the Kingdom’s ongoing efforts to stabilize its economy amid fluctuating oil prices and the push for economic diversification. With careful management of its fiscal strategy, Saudi Arabia is working to navigate these financial hurdles while continuing its ambitious vision for the future.
NEWS DESK
PRESS UPDATE