Saudi Arabia approves 2026 borrowing plan with $58bln in financing needs

The world’s top oil exporter is more than halfway through its Vision 2030 plan that calls ⁠for hundreds of billions ​of dollars in government investment to cut its economic dependence on hydrocarbon revenue.

Saudi ‍Arabia’s finance ‍minister has approved the kingdom’s 2026 borrowing plan, with ​financing needs of about 217 billion riyals ($57.86 billion), the finance ministry said ⁠on Saturday, as the Gulf country pushes ahead with its economic diversification ⁠plans. The amount ‌is intended to cover a projected budget deficit for the 2026 fiscal year of around $44 billion, as ⁠well as the repayment of principal due in 2026, amounting to about $13.87 billion, it added.

The world’s top oil exporter is more than halfway through its Vision 2030 plan that calls ⁠for hundreds of billions ​of dollars in government investment to cut its economic dependence on hydrocarbon revenue. According to ‍the budget, 2026 will mark the start of the “third phase” of the plan ​where the focus shifts from launching economic reforms to maximising their impact, as Riyadh deploys its $925 billion sovereign wealth fund away from delayed massive real estate projects toward sectors including logistics and religious tourism.

The domestic debt market is expected to contribute 20% to 30% of total borrowing for 2026, with the international debt market contributing between 25% and 30%, according to the kingdom’s National Debt Management ⁠Center (NDMC). In its 2026 annual borrowing plan, ‌the NDMC said that the private market is expected to contribute to up to 50% of the funding mix, including ‌through instruments ⁠such as project infrastructure financing and export credit agencies.

© ZAWYA