Saudi Finance Minister Cites Financial Market Gains

Saudi Arabia is advancing toward a more sustainable financial market and is positioned to seize emerging growth opportunities under رؤية السعودية 2030, the finance minister said, pointing to resilient banking indicators, strong capital adequacy and liquidity, and continued growth in the number of licensed capital market institutions during the second quarter of 2026.

The Kingdom is implementing a 2026 annual borrowing plan of about $57.8 billion (roughly SAR 216–220 billion depending on the exchange rate) to cover a projected budget deficit and refinance maturing debt. The strategy focuses on preserving public debt sustainability, diversifying funding sources, and widening the investor base, relying on three main channels: private markets, the domestic debt market of local sukuk and bonds, and international markets through foreign-currency issuances and loans.

The National Debt Management Center uses bonds and sukuk issuances alongside project and infrastructure financing tools, with plans to expand export credit agency-backed financing across 2026 and the medium term. A sovereign Green Financing Framework has also been established to support green, social, sustainable, and sustainability-linked debt instruments and to align sovereign financing with sustainability and climate goals.

Wider access for investors

The Capital Market Authority has issued Guidelines for Issuing Green, Social, Sustainability, and Sustainability-Linked Debt Instruments, effective 27 May 2025, offering a standardized framework in line with international standards. The guidelines broaden financing options, encourage local issuance, and channel capital toward projects that support economic diversification.

As part of ongoing reforms, from 1 February 2026 the Saudi market has been fully opened to foreign investors, removing the earlier Qualified Foreign Investor requirement. Foreign institutional, retail, and non-resident investors can now invest directly in the Main Market (Tadawul), supporting greater liquidity and depth — a move that expands opportunities for residents and expats following the Kingdom's markets.

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