Public-sector borrowing in Saudi Arabia has been rising faster than credit to the private sector, as the government makes greater use of debt markets to support its spending and development plans. New figures show the total public debt climbing steadily across 2024, 2025 and into early 2026.
Public debt stood at about SAR 1,216 billion at the end of 2024, rising to roughly SAR 1,328.8 billion by the end of March 2025 and about SAR 1,466.7 billion by the third quarter of 2025. By the end of December 2025, total outstanding direct indebtedness reached SAR 1,519.0 billion — SAR 943.4 billion domestic and SAR 575.7 billion external. That figure rose further to SAR 1,667.2 billion by the end of March 2026, made up of SAR 1,042.8 billion in domestic debt and SAR 624.4 billion in external debt.
As a share of the economy, public debt increased from about 26–29% of GDP in 2024 to an expected level of around 31.7% in 2025, with projections pointing to roughly 32–33.5% over 2025–2026. Domestic borrowing has consistently made up the larger portion, at around 60–63% of the total, while external debt has accounted for about 37–40%.
At the same time, bank lending remained strong. Credit to the private sector reached about SAR 3,027.5 billion by the third quarter of 2025, growing 13.0% year-on-year. However, credit to the public sector expanded even faster, rising roughly 19.4% year-on-year in the second quarter of 2024 and accelerating further afterward.
For residents and businesses, the trend reflects the Kingdom's continued investment in large-scale projects tied to its long-term economic goals. Access to healthy bank financing supports companies and the wider economy, while the government's use of debt markets helps fund infrastructure and development without straining current budgets.
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