Saudi debt growth slows to 1 percent
Saudi Arabia’s public debt growth slowed to 1.1% during the second quarter of 2026, reaching a total debt of 1.69 trillion Riyals, marking the slowest rate since the third quarter of 2024. This slowdown followed a significant increase in debt during the first quarter, when most financing needs were met through the issuance of domestic and external debt. Although the debt volume grew, the local market absorbed approximately 97% of the increase, reflecting the depth of Saudi Arabia’s debt market. On the other hand, the need for additional financing declined due to a 30% rise in revenues and a 3.5% decrease in expenditures, with the government covering the budget deficit through borrowing without drawing down reserves, while maintaining liquidity stability and supporting national projects. Confirming the strength of the economy, the International Monetary Fund (IMF) expects widespread growth next year despite recent geopolitical tensions.
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