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Saudi Arabia Plans $57.86B Borrowing for 2026 Diversification
4 Jan
Summary
- Saudi Arabia plans to borrow 217 billion riyals for 2026.
- Funding aims to cover a $44 billion deficit and debt repayment.
- Borrowing supports the Vision 2030 economic diversification plan.
Saudi Arabia's finance minister has officially sanctioned the kingdom's borrowing strategy for 2026, setting financing needs at approximately 217 billion riyals, equivalent to $57.86 billion. This financial blueprint is designed to address a projected budget deficit of roughly $44 billion for the upcoming fiscal year, alongside the repayment of principal debts totaling about $13.87 billion.
The approved borrowing plan is integral to advancing Saudi Arabia's ambitious Vision 2030 initiative, a transformative agenda aimed at substantially reducing the nation's reliance on oil revenue through extensive government investment. The year 2026 is marked as the commencement of the plan's third phase, shifting focus towards maximizing the impact of implemented economic reforms.
As Saudi Arabia strategically redirects its $925 billion sovereign wealth fund, the funding mix for 2026 borrowing anticipates contributions from domestic and international debt markets, alongside private sector instruments. The National Debt Management Center projects that the domestic market will supply 20% to 30% of the total borrowing, with international markets contributing 25% to 30%.
