Saudi Arabia plans to address its funding needs of approximately 139 billion riyals ($37.02 billion) for 2025, as outlined by Finance Minister Mohammed al-Jadaan. The National Debt Management Centre (NDMC) announced these plans.
The strategy focuses on diversifying both local and international financing methods to meet these needs efficiently. This will include issuing sovereign debt instruments within a solid risk management framework.
The government will also leverage export credit agency financing, infrastructure development project funding, and capital expenditure financing. Exploring new markets and currencies will depend on prevailing market conditions.
Previously, Saudi Arabia secured a $2.5 billion sharia-compliant revolving credit facility from a mix of regional and international institutions to bridge its budget deficit.
In late 2024, officials reported a budget deficit of 2.3% of GDP, which is an improvement from the earlier revised estimate of 3% for 2024.
Finance Minister Jadaan emphasized the government’s commitment to increasing strategic expenditures through 2025, particularly in development and giga-projects aligned with Vision 2030.
Economist Saad Thaqfan noted that Saudi Arabia is likely to exceed its spending projections for 2025, continuing a trend driven by the expanding requirements of Vision 2030 initiatives.