Saudi Arabia Greenlights USD58B Annual Borrowing Plan for Current Year

(MENAFN) Saudi Arabia's Finance Minister Mohammed bin Abdullah Al-Jadaan greenlit the nation's Annual Borrowing Plan for fiscal year 2026 on Saturday, marking a critical move as the oil-rich kingdom navigates economic headwinds.

The government will require approximately 217 billion Saudi riyals—equivalent to $57.9 billion—to address financial pressures in the coming year, according to a statement from the Saudi National Debt Management Center. This massive funding injection will tackle a forecasted budget shortfall of 165 billion riyals while simultaneously servicing roughly 52 billion riyals in debt obligations reaching maturity.

Riyadh plans to diversify its financing mechanisms beyond traditional borrowing, the center confirmed. The strategy encompasses broadening alternative government funding sources, including project-based financing, infrastructure investments, and export credit agency partnerships throughout 2026 and the medium-term horizon, all operating within carefully calibrated risk management parameters.

The anticipated 2026 deficit represents approximately 3.3 percent of the kingdom's gross domestic product—a notable improvement from 2025's estimated 245 billion riyal shortfall. The previous year's fiscal strain resulted from depressed oil prices coupled with reduced production levels that eroded revenue streams, while government expenditures surged roughly 4 percent beyond budgeted allocations.

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