Saudi Arabia’s Minister of Finance Mohammed Abdullah Aljadaan has given the green light to the Annual Borrowing Plan for the fiscal year 2025, following its approval by the Board of Directors of the National Debt Management Center (NDMC).
This plan outlines significant developments in the public debt landscape for 2024, initiatives aimed at enhancing local debt markets, and the funding strategy along with its guiding principles for 2025.
Additionally, it includes the calendar for issuances under the Local Saudi Sukuk Issuance Program denominated in Saudi Riyal for the upcoming year.
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As per the plan, the estimated funding requirements for 2025 stand at approximately SAR139 billion ($37 billion). This figure is designed to address the expected budget deficit of SAR101 billion for the fiscal year 2025, as detailed in the Ministry of Finance’s Official Budget Statement. Furthermore, it accounts for the repayment of principal amounts on debts maturing in the current year, totaling around SAR38 billion.
Expanding access to debt markets
To strengthen the Kingdom’s access to diverse debt markets and expand the pool of investors, Saudi Arabia is committed to continuing its efforts in 2025 to diversify both local and international funding sources, thereby effectively meeting its financial needs. This will involve issuing sovereign debt instruments at competitive rates, underpinned by well-established and comprehensive risk management practices. Moreover, the Kingdom intends to leverage market opportunities by undertaking private transactions that can stimulate economic growth. These may include financing through export credit agencies, funding for infrastructure development projects, capital expenditure (CAPEX) financing, and exploring new markets and currencies in alignment with prevailing market conditions.
