Finance Minister approves 2023 borrowing plan, funding needs estimated at SAR 45 bln

Minister of Finance Mohammed Al-Jadaan

Minister of Finance, Mohammed Al-Jadaan, approved the annual borrowing plan for 2023, which estimated Saudi Arabia’s financing needs  at nearly SAR 45 billion.

The Kingdom has secured approximately SAR 48 billion of the 2023 total financing needs in 2022 through pre-funding activities. 

The plan was endorsed by the National Debt Management Center’s (NDMC) board.

The plan addressed the sovereign debt developments, debt market initiatives for the year 2022, the 2023 funding plan and its guidelines, in addition to the domestic Sukuk issuance calendar under the Saudi Arabian Government SAR-denominated Sukuk Program, the NDMC said in a statement.

Despite expectations for a budget surplus in 2023, the Kingdom aims to continue its funding activities in the domestic and international markets with the objective of repaying debt principal that will mature in 2023 and in the medium term.

Saudi Arabia will further utilize opportunities based on market conditions to enter into pre-funding and liability management transactions, financing strategic projects and executing government-alternative funding transactions that will promote economic growth, such as capital expenditure and infrastructure financing.

The NDMC will also continue to consider additional funding activities subject to market conditions. It seeks to strengthen the Kingdom's presence in debt markets and enhance the Kingdom's debt portfolio characteristics, the statement added.