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The Saudi Ministry of Finance approved the 2026 annual borrowing plan that projects total financing needs at $58 billion comprising $44 billion to cover the anticipated budget deficit and $14 billion for principal debt repayments according to the official announcement. International bond sales are anticipated to represent between 25 and 30 per cent of overall borrowing or roughly $14 billion to $18 billion which would mark a slowdown from the pace of recent years Emirates NBD economists noted in their analysis. The National Debt Management Center outlined that domestic markets would contribute 20 to 30 per cent while private sources including project and infrastructure financing could supply up to half the funding mix.
In 2025 Saudi authorities had budgeted for 139 billion riyals in borrowing but ultimately raised more than 400 billion riyals with 61 billion riyals allocated as pre-funding for 2026 requirements Emirates NBD reported. The plan stresses maintaining debt sustainability and diversifying sources between domestic and international markets through bonds sukuk and loans at competitive costs the ministry statement said. Officials also intend to broaden alternative government funding via export credit agencies and similar instruments over the medium term within established risk frameworks.
Saudi Arabia’s 2026 budget approved last month calls for spending of 1.31 trillion riyals and forecasts a deficit of 165.4 billion riyals equivalent to about 3 per cent of gross domestic product under government projections. Emirates NBD analysts project the shortfall will approach 5 per cent of GDP citing lower oil revenues after benchmarks dropped nearly 20 per cent in 2025 on oversupply concerns together with more modest non-oil income growth than budgeted. The kingdom plans to sustain oil production above 10 million barrels per day despite the price pressures according to the bank’s assessment.
International Monetary Fund estimates place Saudi Arabia’s economic growth at 4 per cent for 2026 supported by increased oil output and domestic demand linked to ongoing reforms. Riyad Bank data showed the seasonally adjusted non-oil private sector Purchasing Managers’ Index easing for a second month to 57.4 in December from 58.5 in November while remaining well above the 50 threshold that denotes expansion. Naif Al-Ghaith chief economist at Riyad Bank said “Saudi Arabia’s non-oil private sector closed the year with a solid expansion … with activity continuing to expand despite some loss of momentum.”
Output growth stayed solid backed by sustained domestic demand project approvals and continued business investment even though the pace slowed to its weakest since August according to Riyad Bank. New orders rose markedly amid improved economic conditions and new contracts while employment growth remained robust though below the October high the bank’s survey found. Input price inflation accelerated in December driven by higher purchase costs the figures indicated.
IMF data places Saudi Arabia’s general government gross debt at approximately 31 per cent of GDP in 2025 with the 2026 plan continuing a focus on prudent management to support long-term sustainability. The Ministry of Finance highlighted the kingdom’s commitment to Vision 2030 diversification while signalling a measured fiscal approach in response to softer energy prices. The National Debt Management Center announced in early January that the kingdom completed its first international bond issuance of the year raising $11.5 billion across multiple tranches.
