Skip to content Skip to Search
Skip navigation

Saudi agrees $23bn financing to balance books

Saudi finance minister Mohammed Al Jadaan Made Nagi/Pool via Reuters
Finance minister Mohammed Al-Jadaan said that $12bn bond proceeds will cover the deficit and accelerate spending on major projects
  • 2024 Borrowing Plan approved
  • Vision 2030 spend to increase
  • Projects valued at $1.48trn

Saudi Arabia requires roughly SAR86 billion ($23 billion) in financing this year in order to help balance the kingdom’s books.

The 2024 Annual Borrowing Plan was given the green light by finance minister Mohammed Al Jadaan on Thursday at a board meeting of the National Debt Management Center.

The 2024 budget statement, approved in December, estimated that the deficit for 2023 will be $22 billion, rather than the surplus of $4 billion that was being predicted last year.

The ministry predicted further annual deficits of between $20 billion and $30 billion over the next three years.

The plan will be used to finance the deficit “in addition to seizing available opportunities according to market conditions to implement additional financing activities to pay debt maturing in the coming years”, according to a statement.

“Furthermore, it is committed to leveraging market opportunities to execute alternative government financing activities that promote economic growth, such as financing development and infrastructure projects,” it added.

The kingdom, the largest oil exporter in the world, is also set to ramp up spending on its economic transformation programme Vision 2030, which is designed to end the country’s dependence on fossil fuels.

The total value of ongoing projects in Saudi Arabia was $1.487 trillion at the end of October, according to the Saudi Contractors Authority.

Last month, the kingdom arranged an $11 billion syndicated loan to help fund its infrastructure developments, the largest government loan worldwide this year.

By the end of 2024, Saudi Arabia’s total debt portfolio is expected to reach SAR1.115 billion, amounting to 26 percent of GDP, as previously revealed by the government.

In October, the International Monetary Fund trimmed Saudi Arabia’s GDP growth forecast for 2023 to 0.8 percent from its July estimates of 1.9 percent, and in December the ministry of finance forecast 0.03 percent GDP for 2023 but a rebound to 4.4 percent in 2024.

Latest articles

In a concession to the electorate, the legislation before parliament proposes a 25 percent increase in the payment to pensioners on the lowest rate of support

Turkey targets business with steep taxes to raise revenue

Multinational corporations operating in Turkey face a steep increase in their tax bills, thanks to one of the new revenue-raising measures outlined by the government in draft legislation aimed at narrowing the budget deficit. Under the new tax reforms, tabled before the parliament on July 16, multinationals with more than $817.6 million in annual consolidated […]

People, Person, Groupshot APQ CEO Ebubekir Koyuncu (sitting left) and Aramco acting senior vice president of new business development Mohanad M Alamdar at the signing ceremony

Saudi Aramco bolsters blue hydrogen portfolio 

Saudi Aramco has acquired a 50 percent stake in Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly-owned subsidiary of Air Products Qudra. No financial details were disclosed. The transaction, subject to standard closing conditions, includes options for the oil giant to offtake hydrogen and nitrogen.  The remaining 50 percent will be owned by APQ, […]

Egypt's SCA is seeking revenue of $9 billion from the Suez Canal operation in 2024/2025, 25 percent more than the previous year

Egypt to float Suez Canal subsidiary next year

Egypt’s Suez Canal Authority (SCA) is planning to list Canal Mooring & Lights Company, a specialist in the mooring and unmooring of ships, on the local bourse, a news report said. The proposed listing will take place early next year, Bloomberg Ashraq reported, quoting SCA’s chairman Osama Rabie. In June 2023, the official confirmed the […]

Aircraft, Transportation, Vehicle

Near-space balloon flights to start from Abu Dhabi next year

European space exploration company Eos-X Space will begin operating balloon flights to the edge of space from Abu Dhabi in the third quarter of 2025, as it aims to gain a bigger stake in the $9 billion space tourism industry. The UAE capital will host the launch facility and spaceport, including a hotel complex on […]