A $12 Billion Borrowing Planned By Saudi Arabia In 2023

As per the Saudi Press Agency, the country is planning to borrow $12.9 billion this year. Mohammed bin Abdullah Al-Jadaan, the country’s foreign minister, has given the go-ahead to the Kingdom’s borrowing plan for the year 2023, following the board’s endorsement in the last meeting by the National Debt Management Centre, according to the state-run news agency.

The plan is an inclusion of debt market initiatives for the entire year, sovereign debt developments, and also the domestic Sukuk issuance calendar, which falls under the SAR denominated Sukuk program.

The plan for 2023 has in place the financing needs estimation of around $12.9bn- SAR45 billion post securing SAR48 billion last year via pre-funding activities. All this will lead to a 2.67% surplus in the GDP.

Although there is an expectation to achieve a surplus budget in 2023, Saudi Arabia looks to go ahead with its funding activities across the domestic as well as international markets with the aim of repaying the debt principal, which is expected to mature in 2023 and also during the medium term, hence utilising opportunities that are based on market conditions so as to enter into liability management transactions as well as pre-funding, strategic project financing, and also execute the government’s alternative funding transactions that will enhance economic growth, like expenditure on capital and financing infrastructure.

Besides this, the NDMC shall continue to take into account the other additional funding activities that are subject to the conditions of the market and available through local or international funding channels.