Mohammed bin Salman’s dream is heavy on Saudi Arabia, increasing debt and bond sale starts for 2025

Crown Prince of Saudi Arabia Mohammed bin Salman (MBS) The vision is to free the country’s economy from dependence on oil. For this, he has started many huge projects on which huge expenditure is being incurred. But this ambitious plan is continuously increasing the debt burden on Saudi Arabia.

Saudi Arabia in 2024 Largest bond issuers in emerging markets Was one of. Now continuing this process in 2025, the Saudi government has started the first process of selling bonds.

Record bond sales in 2024

bloomberg According to the report, Saudi Arabia in 2024 17 billion dollars Sold international bonds.

• It is in emerging markets 2nd place after Romania Was.
• All bonds were issued in US dollars.

In 2025, Saudi Arabia may also consider other currencies to diversify its funding strategy.

• National Debt Management Center (NDMC) Saudi Arabia’s financial needs in 2025, according to 139 billion riyals ($37 billion) Expected to stay.

Option for new loan also opened

In addition to selling international bonds, the Saudi government will also finance ambitious projects. new loan Also planning to take.

• to saudi arabia $2.5 billion from 3 banks of 3 years revolving credit facility Has been received.
• These banks are:
  1. Abu Dhabi Islamic Bank
  2. Crédit Agricole SA
  3. Dubai Islamic Bank

Vision 2030 and increasing expenses

Crown Prince Mohammed bin Salman vision 2030 Under this, Saudi Arabia is investing extensively in every sector.

• Major Projects:
  • construction of new cities (e.g. NEOM,
  • Investments in sports and semiconductor industries.
  • Development of modern infrastructure at a cost of hundreds of billions of dollars.

Loan and funding challenge

The Saudi government needs huge investment for these ongoing projects to reduce oil dependence.

• Record funding in 2024,
  • Saudi sold bonds worth $17 billion.
  • There is a possibility of including other currencies for funding in 2025.
• Increasing loan needs:
  • Saudi Arabia has to take loans from foreign and domestic sources for projects.

What is the Saudi government’s plan?

Saudi Arabia is adopting new funding strategies to reduce its dependence on oil.

• Issuance of international bonds.
• Exploring funding options in other currencies.
• Borrowing from private investors and international banks.

Analysis of Saudi economic situation

1. Plus Points:
   • Ambitious projects are taking Saudi towards building a modern and diversified economy.
   • Global investors have confidence in the Saudi economy.
2. Challenges:
   • Financial pressure due to increasing debt.
   • Uncertainty over the success of projects.
   • Impact of reduction in oil revenues.