Saudi Arabia Approves SAR 217 Billion Borrowing Program to Fund 2026 Budget Deficit and Repay Debt

Riyadh | EcoPulse24

Saudi Arabia's Minister of Finance and Chairman of the National Debt Management Center, Mohammed Al-Jadaan, has approved the annual borrowing plan for the fiscal year 2026 following its endorsement by the Center's Board of Directors. This move aims to regulate the government's financing needs and enhance public debt sustainability.

The plan projects total financing needs for 2026 at approximately SAR 217 billion, allocated to cover a general budget deficit estimated at SAR 165 billion and to repay debt principal maturities of about SAR 52 billion during the same year.

The plan also reviews the evolution of public debt in 2025, local debt market initiatives, and details the 2026 financing plan and its guiding principles, including a schedule for the Saudi Riyal-denominated local sukuk program for the coming year.

The move builds on Saudi Arabia’s previously approved 2026 budget, which set total spending at SAR 1.31 trillion and projected economic growth of 4.6%, reflecting continued investment in infrastructure, diversification, and strategic development programs. A comprehensive analysis of the kingdom’s 2026 fiscal framework, including revenue assumptions and expenditure priorities, was published earlier by EcoPulse24 and can be accessed here:
https://ecopulse24.com/articles/saudi-arabia-approves-historic-2026-budget-sar-1-31-trillion-in-spending-and-4-6-growth-outlook

The Kingdom aims, through this plan, to maintain public debt sustainability, broaden its investor base, and diversify funding sources locally and internationally using a range of instruments, including bonds, sukuk, and loans, to achieve optimal financing costs. The strategy also includes expanding government financing alternatives, such as project and infrastructure financing and leveraging export credit agencies, within well-defined frameworks for medium-term risk management.