Saudi Arabia Sets SAR 217bn 2026 Borrowing Plan

Saudi Arabia has moved forward with new sukuk issuances from the government and major banks as part of its 2026 borrowing plan, which targets roughly SAR 217 billion (about $57.9 billion) in total funding needs for the year.

Under the plan, about SAR 165 billion is earmarked to cover the budget deficit, while around SAR 52 billion is set aside to repay maturing principal debt. The Kingdom expects domestic markets to account for 20–30% of this year's borrowing and international markets to make up 25–30%. Public debt is targeted to remain at no more than about 33% of GDP.

Local and international issuances

Under the Saudi Government SAR-denominated Sukuk Program, a January 2026 issuance allocated SAR 2.269 billion, while an August 2026 issuance allocated about SAR 9.518 billion. In a liability management transaction, roughly SAR 17.1 billion of existing domestic sukuk was redeemed before maturity, with about SAR 17.2 billion in new sukuk issued across five tranches maturing in 2031, 2033, 2036, 2039 and 2041.

The tranche sizes were about SAR 1.45 billion (2031), SAR 1.62 billion (2033), SAR 10.55 billion (2036), SAR 1.74 billion (2039) and SAR 1.80 billion (2041). On the international side, a two-tranche sukuk raised $1.25 billion maturing in 2031 and $2.0 billion maturing in 2036.

For residents and businesses, an active and well-managed debt program supports stable public finances and continued spending on the projects and services shaping daily life across the Kingdom. Extending maturities and diversifying between local and global markets helps the government manage repayments smoothly while keeping debt at moderate levels relative to the size of the economy.

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