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Saudi Arabia’s Minister of Finance Mohammed bin Abdullah Al-Jadaan has approved the kingdom’s borrowing plan to cover this year’s financing needs of 86 billion riyals ($23 billion), the National Debt Management Centre (NDMC) said on Thursday.
The country requires SAR86 billion in financing this year to settle debt maturities and fund the projected deficit of the 2024 budget, the NDMC said in a statement.
By the end of 2024, the country’s debt portfolio is projected to reach SAR1.115 trillion.
Saudi’s borrowing plan includes public debt developments, as well as a calendar of domestic sukuk issuances.
“The 2024 annual borrowing plan includes meeting the kingdom’s financing activities both locally and international to finance [deficit]… and payment of debt maturing in 2024 and in the medium term, in addition to seizing available opportunities according to market conditions to implement additional financing activities to pay debt maturing in the coming years,” the statement said.
The borrowing plan is also “committed to leveraging market opportunities to execute alternative government financing activities that promote economic growth, such as financing development and infrastructure projects,” it added.
Saudi Arabia has rolled out various giga projects as part of its ambitious Vision 2030 plan to transform its economy and reduce its dependence on oil revenues.
The kingdom intends to continue funding this year the implementation of initiatives and projects in line with the Vision 2030 plan.
It has anticipated a budget deficit of SAR79 billion this year, representing about 1.9% of its gross domestic product (GDP). Total expenditures are expected to reach SAR1.25 trillion, with revenues forecast to hit SAR1.172 trillion.
(Writing by Cleofe Maceda; editing by Brinda Darasha)