RIYADH: Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan on Saturday approved the Kingdom’s annual borrowing plan for the 2026 fiscal year, following its endorsement by the National Debt Management Center’s board of directors, the Saudi Press Agency reported.
The plan outlines key developments in public debt during 2025, initiatives aimed at strengthening local debt markets, and the funding strategy and guiding principles for 2026, the SPA added.
It also includes the issuance calendar for the Local Saudi Sukuk Issuance Program in Saudi riyals for the year.
According to the plan, the Kingdom’s projected funding needs for 2026 are estimated at approximately SR217 billion ($57.8 billion).
This is intended to cover an anticipated budget deficit of SR165 billion, as set out in the Ministry of Finance’s official budget statement, as well as principal repayments on debt maturing during the year, estimated at around SR52 billion.
The plan aims to maintain debt sustainability while diversifying funding sources across domestic and international markets through both public and private channels.
Funding will be raised through the issuance of bonds, sukuk and loans at fair cost, according to the SPA report.
It also outlines plans to expand alternative government financing, including project and infrastructure funding and the use of export credit agencies, during fiscal year 2026 and over the medium term, within prudent risk management frameworks.
“In 2026, the Kingdom aims to maintain debt sustainability, diversify funding sources between domestic and international markets through public and private channels by issuing bonds, sukuk, and loans at a fair cost,” said the Ministry of Finance in a separate press statement.
The borrowing plan also aims to develop and implement the Kingdom’s public debt policy and secure Saudi Arabia’s financing needs at the lowest possible cost over the medium to long term.
“NDMC aims to ensure the Kingdom’s sustainable and diversified access to domestic and international debt markets at fair prices and consistent with sound risk management guidelines,” said the center in its annual borrowing plan report.
NDMC added that the private market is expected to contribute up to 50 percent of the funding mix, including through instruments such as project infrastructure financing and export credit agencies.
“The government remains committed to leveraging market opportunities, while ensuring that the mobilization of private financing remains fully aligned with Medium-Term Debt Strategy risk thresholds,” added the center.
Source: www.arabnews.com