Saudi Arabia estimates 2024 financing needs at $23 billion

Saudi Arabia estimates 2024 financing needs at $23 billion

Clouds move over the Riyadh skyline. Saudi Arabia has spent heavily on initiatives to diversify its economy. — Reuters file

Published: Thu 4 Jan 2024, 6:22 PM Last updated: Thu 4 Jan 2024, 8:12 PM

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 Center (NDMC) said on Thursday.

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 NDMC 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 leverageing market opportunities to execute alternative government financing activities that promote economic growth, such as financing development and infrastructure projects.”

Public debt is expected