Under Crown Prince Mohammed bin Salman’s Vision 2030 agenda, the government is spending hundreds of billions of dollars on everything from new cities to sports to semiconductors.
RIYADH: Saudi Arabia was one of the largest bond issuers among emerging economies in 2024, and this trend will continue in 2025, according to a new report. The Saudi government has indicated it intends to maintain the same borrowing pace in 2025 to finance large-scale projects. The process of selling the first bonds this year has already begun. Crown Prince Mohammed bin Salman aims to reduce the country’s dependence on oil, and several large-scale projects involving significant spending are underway in Saudi Arabia.
The Saudi government sold $17 billion in international bonds in 2024, making it the second-largest among emerging economies after Romania, Bloomberg reported. All Saudi debt was denominated in dollars, but there is speculation that the country may consider other currencies this year to diversify its funding base.
The kingdom’s fiscal needs this year are estimated at SR139 billion (US$37 billion), the National Debt Management Center (NDMC) said in a press release.
new debt owed by the government
The report further adds that the Saudi government could take on new debt in addition to issuing bonds. Authorities announced that they had secured a $2.5 billion three-year revolving credit facility from three banks.
According to Bloomberg, these banks are Abu Dhabi Islamic Bank, Credit Agricole SA and Dubai Islamic Bank. Under Crown Prince Mohammed bin Salman’s Vision 2030 agenda, the government is spending hundreds of billions of dollars on everything from new cities to sports to semiconductors.
Brent crude oil is trading at $76 per barrel, below the $90 per barrel level needed to balance Saudi Arabia’s budget in 2025, according to the International Monetary Fund (IMF). Nevertheless, the Saudi company Aramco increased oil prices for Saudi buyers. Asia shows strong demand expected in key markets next month.
