Saudi Arabia Unveils $23 Billion Borrowing Strategy to Navigate 2024 Fiscal Landscape

Saudi Arabia's Minister of Finance, Mohammed bin Abdullah Al-Jadaan, greenlit the nation's borrowing strategy aimed at addressing the fiscal requirements for the current year.

According to the National Debt Management Centre (NDMC), the kingdom is poised to secure 86 billion riyals, equivalent to $23 billion, to manage debt obligations and sustain the anticipated deficit outlined in the 2024 budget.

The NDMC's official statement highlighted the specifics of the financial strategy, emphasizing that the country is targeting a debt portfolio that will escalate to SAR1.115 trillion by the end of 2024.

This comprehensive borrowing blueprint encompasses both public debt advancements and a strategic calendar for domestic sukuk offerings.

Detailing the intricacies of the plan, the NDMC remarked, "The 2024 fiscal agenda is designed to address the kingdom's domestic and international financing needs, catering to the deficit, settling maturing debts for the year, and also strategically positioning ourselves to capitalize on market dynamics for further financial activities in subsequent years."

Moreover, the borrowing initiative underscores the kingdom's commitment to harnessing market dynamics for fostering economic expansion.

The statement elaborated, "We remain steadfast in leveraging market avenues to bolster alternative financing mechanisms that drive economic vitality, particularly in sectors like developmental and infrastructural projects."

Saudi Arabia's economic vision, encapsulated in its transformative Vision 2030 plan, has been instrumental in steering the nation towards diversifying its economic landscape and mitigating its reliance on oil-generated revenues.

The ambitious blueprint continues to fuel various giga projects, and the kingdom is resolute in channeling funds this year to materialize initiatives aligned with the Vision 2030 objectives.

As part of its fiscal projections, Saudi Arabia has earmarked a budget deficit of SAR79 billion for the current year, reflecting approximately 1.9% of its gross domestic product (GDP).

Concurrently, the nation anticipates total expenditures to touch SAR1.25 trillion, while revenue expectations stand at SAR1.172 trillion, signaling a strategic approach to financial management amidst evolving economic landscapes.

Cleofe Maceda / Zawya