Saudi Gazette report

RIYADH — Minister of Finance Mohammed Al-Jadaan has approved the annual borrowing plan for the fiscal year 2025, following its endorsement by the Board of Directors of the National Debt Management Center.

The plan highlights key developments in public debt for 2024, initiatives related to local debt markets, and the funding plan and its guiding principles for 2025, in addition to the 2025 issuances’ calendar for the Local Saudi Sukuk Issuance Program in Saudi riyal.

According to the plan, the projected funding needs for 2025 are estimated at approximately SR139 billion. This amount is intended to cover the anticipated budget deficit of SR101 billion for the fiscal year 2025, as outlined in the Ministry of Finance’s Official Budget Statement.

The principal repayment of the debts maturing in the current year 2025 amounted to approximately SR38 billion. To enhance the sustainability of the Kingdom's access to various debt markets and broaden the investor base, Saudi Arabia aims in 2025 to continue diversifying local and international financing channels to efficiently meet funding needs. This will be achieved through the issuance of sovereign debt instruments at fair pricing, guided by well-defined and robust risk management frameworks.

Additionally, the Kingdom plans to benefit from market opportunities by executing private transactions that can promote economic growth, such as export credit agency financing, infrastructure development project financing, capital expenditure (CAPEX) financing, and exploring tapping into new markets and currencies based on market conditions