Media365
Saudi Arabia is laying out its financing roadmap for the year ahead. With a sizeable budget deficit forecast and major debt repayments due, the Kingdom has approved a detailed borrowing plan for 2026 that aims to balance funding needs with long-term debt sustainability, while continuing to deepen local markets and tap global investors.
Borrowing plan approved and scope defined
Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, who also serves as Chairman of the National Debt Management Centre, has approved the Kingdom’s annual borrowing plan for the 2026 fiscal year. The plan provides a comprehensive overview of public debt developments during 2025 and outlines initiatives designed to strengthen the local debt market. It also sets out the financing plan and guiding principles that will govern borrowing activities in 2026. A key component of the document is the issuance calendar for the Local Saudi Sukuk Issuance Program, which will be conducted in Saudi riyals throughout the year.
SR217 billion in financing needs for 2026
Under the approved plan, Saudi Arabia’s projected financing requirements for 2026 are estimated at approximately SR217 billion, equivalent to about $57.9 billion.This total is intended to meet two main obligations:
- Covering an anticipated budget deficit of around SR165 billion for the 2026 fiscal year, as outlined in the Ministry of Finance’s official budget statement.
- Repaying debt principal maturing during the year, estimated at approximately SR52 billion.
Together, these elements define the Kingdom’s funding needs and shape its borrowing strategy for the year.
Strategy focused on sustainability and diversification
The 2026 borrowing plan emphasizes maintaining debt sustainability while continuing to diversify funding sources. Saudi Arabia plans to raise funds across both domestic and international markets, using a mix of public and private channels.Funding will be secured through the issuance of bonds, sukuk, and loans, with a focus on achieving fair financing costs. At the same time, the Kingdom aims to expand its investor base, reinforcing demand for its debt instruments and supporting market depth over the longer term.
Expanding alternative financing channels
Beyond traditional borrowing tools, the plan outlines efforts to broaden alternative government financing options. These include greater use of project financing and infrastructure financing, as well as leveraging export credit agencies.Such initiatives are planned for the 2026 fiscal year and over the medium term, and will be implemented within carefully studied and prudent risk management frameworks. Together, these measures are designed to provide flexibility, reduce concentration risks, and support the Kingdom’s broader fiscal and economic objectives.
