Saudi Arabia estimates 2024 financing needs at $23 billion – Gulf Today

Saudi Arabia estimates 2024 financing needs at $23 billion – Gulf Today

Visitors walk near the King Fahd Library in Riyadh, Saudi Arabia. Reuters

Saudi Arabia estimates financing needs of about 86 billion riyals ($22.93 billion) in 2024 under a borrowing plan approved by Finance Minister Mohammed Al Jadaan, the National Debt Management centre (NDMC) said.

The kingdom, the world’s top oil exporter, has forecast a budget deficit of 79 billion riyals in 2024, slightly smaller than a deficit of 82 billion riyals projected for last year as lower crude production and global prices reduced revenue.

But the government, tasked with implementing an economic transformation programme known as Vision 2030, will also increase spending over the coming years to drive domestic growth and support non-oil GDP.

The National Debt Management centre said that the borrowing plan is expected to finance the budget deficit and the repayment of upcoming debt maturities, as well as to tap markets opportunistically as part of the country’s liability management strategy.

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

Public debt is expected to reach 1.115 trillion riyals by the end of 2024, which is around 26 per cent of GDP, the