Saudi borrowing blitz picks up as Vision 2030 deadlines, World Cup loom
Saudi Arabia is ahead of the pack as countries wary of volatility borrow cash before President-elect Donald Trump is inaugurated.
Emerging market bond sales surged past $55 billion during the first weeks of 2025 as countries wary of potential volatility rushed to lock in cash before Donald Trump’s coming administration, as Reuters reported Jan. 13. Leading the way in this borrowing barrage? Saudi Arabia.
The Middle East’s largest economy kicked off the new year by raising over $20 billion during January’s first week from various sources as it hunts for fresh funds to power big spending on mega projects, AI, sports and beyond. This year continues an ongoing borrowing spree by the Saudi government, which has projected funding needs of $37 billion in 2025 as it seeks to plug another budget gap. Alongside a forecasted fiscal deficit of $27 billion for this year, this outlay includes $10 billion to repay maturing debt.
It's all setting up another busy year for the cash-hungry country. “We think that Saudi Arabia will approach the market more often in 2025,” said Ralf Wiegert, head of MENA economics at S&P Global Market Intelligence, pointing out that the oil-rich kingdom is pursuing a similar capital-raising strategy to last year's. “The Saudi government has traditionally been taking advantage of still relatively benign market circumstances and locked in borrowing conditions early on in the year,” Wiegert told Al-Monitor.
After posting a rare budget surplus in 2022 atop surging oil demand, Saudi Arabia has returned to running deficits as crude prices sit well below levels needed to meet big spending commitments tied to Riyadh’s ambitious Vision 2030 economic diversification plan.
