Saudi Arabia approves SR217 billion 2026 borrowing plan

Dubai: Saudi Arabia has approved its annual borrowing plan for the 2026 fiscal year, setting out a financing framework. 

The plan was endorsed by the board of directors of the National Debt Management Center and approved by Mohammed Al Jadaan, Saudi Arabia’s Minister of Finance and chairman of the centre, according to Okaz newspaper. 

It outlines key developments in public debt during 2025, initiatives to strengthen the local debt market, and the guiding principles for financing in 2026, including a review of the issuance calendar for Saudi riyal-denominated sukuk.

Under the borrowing plan, Saudi Arabia’s total financing needs for 2026 are estimated at around SR217 billion ($57.9 billion). This figure includes funding to cover the projected budget deficit for the year, estimated at approximately SR165 billion under the Ministry of Finance’s budget statement, as well as the repayment of debt principal maturing in 2026, estimated at about SR52 billion.

The government said the 2026 strategy is designed to maintain debt sustainability while expanding the Kingdom’s investor base and further diversifying funding sources both domestically and internationally. Financing will be raised through a mix of bonds, sukuk and loans, issued at what the authorities described as fair and appropriate cost levels.

In parallel, the plan emphasises the expansion of alternative forms of government financing, including project and infrastructure financing and the use of export credit agencies, both during 2026 and over the medium term. These measures, the plan noted, will be pursued within carefully designed risk-management frameworks.