Saudi Arabia Looks to Borrow 8 Billion
Saudi Arabia is currently seeking to borrow approximately $8 billion to diversify its sources of funding and counter the economic repercussions of the war in the Middle East, particularly its impact on trade flows and oil prices. The kingdom has begun discussions with banks and companies to assess the possibility of securing this financing, although negotiations are still in the early stages and may not result in a deal. This move comes against the backdrop of a declining Saudi economy, which shrank at the fastest pace since the COVID-19 pandemic in the second quarter, with the oil sector suffering a roughly 25% decline and supply chain pressures increasing. Despite rising oil prices—which helped bolster public finances—the average Brent crude price this year has been around $87 per barrel. Saudi Arabia is also aiming to fund economic diversification plans through borrowing this year, which has so far included approximately $6 billion from domestic and international bonds, in addition to investments in major projects such as the privatization of Aramco and global investments worth billions of dollars.
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