Finance Ministry Approves SR 139 Billion Borrowing Plan for 2025

In a strategic move to ensure fiscal stability, Saudi Arabia's Minister of Finance, Mohammed Al-Jadaan, has approved the annual borrowing plan for 2025. Endorsed by the Board of Directors of the National Debt Management Center, the plan outlines the Kingdom's approach to managing public debt and funding needs in the upcoming fiscal year.

The projected funding requirement for 2025 stands at SR 139 billion, primarily to address an anticipated budget deficit of SR 101 billion. This funding will be essential for covering the shortfall and ensuring the continued execution of key governmental projects and initiatives. The remainder of the amount will focus on repaying SR38 billion in debts maturing within the same year.

Key elements of the plan include the issuance calendar for the Local Saudi Sukuk Issuance Program, which will be conducted in Saudi riyals. This initiative is part of a broader effort to diversify financing channels and maintain the Kingdom’s strong presence in both local and international debt markets. The strategy emphasizes the importance of issuing sovereign debt instruments at competitive rates, guided by a robust risk management framework designed to ensure financial sustainability.

Saudi Arabia’s plan also highlights the intent to capitalize on market opportunities by engaging in private transactions aimed at economic growth. This includes financing through export credit agencies, infrastructure project funding, and CAPEX financing. Additionally, the Kingdom is exploring new markets and currencies to further broaden its investor base and enhance economic resilience.