Al-Jadaan approves the 2026 borrowing plan and financing of 217 billion riyals

His Excellency the Minister of Finance and Chairman of the Board of Directors of the National Debt Management Center, Mr. Mohammed bin Abdullah Al-Jadaan, officially approved the Kingdom of Saudi Arabia’s annual borrowing plan for the fiscal year 2026. This approval came after the Board of Directors of the Center ratified the plan, which outlines the financial and financing policy of the Kingdom during the coming period, ensuring the sustainability of the state’s financial solvency.

Details of funding needs and expected deficit

A statement issued by the National Debt Management Center revealed that the total projected financing needs for 2026 are estimated at approximately 217 billion Saudi riyals. This financing is primarily aimed at two main areas:

• Covering the deficit: To bridge the expected deficit in the state’s general budget for 2026, which initial estimates from the Ministry of Finance indicate will reach approximately 165 billion riyals.
• Debt repayment: Fulfilling outstanding financial obligations and paying off the principal debt within the same year, estimated at approximately 52 billion riyals.

Diversification and debt sustainability strategy within Vision 2030

This plan is an extension of the Kingdom's prudent fiscal policies within the framework of Vision 2030, aiming not only to address the deficit but also to enhance the efficiency of financial planning. The center explained that the plan included a comprehensive review of the most significant developments in public debt for 2025, initiatives to develop local debt markets, and an evaluation of the local sukuk program issuances in Saudi riyals.

Through this strategy, the Kingdom seeks to maintain public debt at safe levels while working diligently to expand its base of local and international investors. This is achieved by diversifying funding channels, including bond and sukuk issuances and conventional loans, to ensure access to financing at a fair and appropriate cost in line with market conditions.

Alternative finance and financial market development

In a move reflecting the evolution of government financial thinking, the center affirmed its commitment to expanding "alternative government financing" operations. These operations include financing major projects, infrastructure development, and collaboration with export credit agencies during 2026 and the medium term. These instruments aim to alleviate pressure on the public budget and support major development projects without negatively impacting the Kingdom's credit rating, all within carefully considered frameworks for managing financial risks.

This trend reflects the confidence of global financial institutions in the Saudi economy and its ability to meet its obligations, which enhances the attractiveness of Saudi debt instruments in global markets and contributes to deepening the local debt market as one of the pillars of the financial sector.