Saudi Arabia is planning to borrow around SR45bn ($12.9bn) this year, according to the Saudi Press Agency.
The state-run news agency said Saudi Arabia’s Minister of Finance, Mohammed bin Abdullah Al-Jadaan, approved the Kingdom’s annual borrowing plan for 2023 after the National Debt Management Centre’s board endorsement in its last meeting.
The plan includes the sovereign debt developments, debt market initiatives for the year and the 2023 funding plan and its guidelines, in addition to the domestic Sukuk issuance calendar under the Saudi Arabian Government SAR-denominated Sukuk Program.
Saudi borrowing plan
The 2023 plan has highlighted the estimation for financing needs at approximately SAR45bn, after securing approximately SAR48bn of the 2023 total financing needs in 2022 through pre-funding activities.
This would result in a surplus of 2.6 per cent of GDP.
Despite the expectation of achieving a budget surplus during the year 2023, the Kingdom aims to continue its funding activities in the domestic and international markets with the objective of repaying debt principal that will mature during 2023 and during the medium-term; utilising opportunities based on market conditions to enter into pre-funding and liability management transactions, financing strategic projects; and executing government-alternative funding transactions that will promote economic growth such as capital expenditure and infrastructure financing.
In addition, the NDMC will continue to consider additional funding activities subject to market conditions and through available funding channels locally or internationally.
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