Minister of Finance, Mohammed Al-Jadaan, has recently approved the annual borrowing plan for the fiscal year 2025. This plan, which was endorsed by the Board of Directors of the National Debt Management Center, highlights key developments in public debt for 2024, initiatives related to local debt markets, and the funding plan and guiding principles for 2025. One of the key components of the plan is the 2025 issuances’ calendar for the Local Saudi Sukuk Issuance Program in Saudi riyal.
The projected funding needs for 2025 are estimated at approximately SR139 billion, which is intended to cover the anticipated budget deficit of SR101 billion. The principal repayment of debts maturing in 2025 is around SR38 billion. The Kingdom aims to enhance the sustainability of its access to debt markets and broaden its investor base by diversifying local and international financing channels. Saudi Arabia plans to issue sovereign debt instruments at fair pricing, guided by well-defined and robust risk management frameworks.
In addition to issuing sovereign debt instruments, the Kingdom plans to benefit from market opportunities by executing private transactions that can promote economic growth. These opportunities may include export credit agency financing, infrastructure development project financing, capital expenditure (CAPEX) financing, and exploring tapping into new markets and currencies based on market conditions. By diversifying its financing channels and exploring new opportunities, Saudi Arabia aims to efficiently meet its funding needs in 2025.
One of the key strategies for the Kingdom in 2025 is to continue diversifying local and international financing channels to meet its funding needs. By issuing sovereign debt instruments at fair pricing and adhering to well-defined risk management frameworks, Saudi Arabia aims to enhance the sustainability of its access to debt markets and broaden its investor base. Additionally, the Kingdom plans to explore market opportunities through private transactions that can promote economic growth, such as export credit agency financing and infrastructure development project financing.
Saudi Arabia’s funding plan for 2025 includes issuing sovereign debt instruments at fair pricing, guided by robust risk management frameworks. The Kingdom aims to enhance the sustainability of its access to debt markets and broaden its investor base by diversifying its financing channels. By exploring new opportunities in the market, such as export credit agency financing and infrastructure development project financing, Saudi Arabia aims to promote economic growth and efficiently meet its funding needs. Through strategic planning and implementation, the Kingdom is well-positioned to navigate the challenges and opportunities of the global financial landscape in 2025.
