Saudi Arabia has asked international banks to submit proposals for a syndicated loan in the range of $6-8 billion over five years. This loan is part of a broader 2026 borrowing strategy aiming to raise approximately $58 billion to cover a projected budget deficit of about $44 billion and existing debt repayments of roughly $13.87 billion. The conflict with Iran, which began in late February 2026, has fundamentally reshaped the kingdom’s fiscal situation, with surging military spending and disrupted regional supply chains. Saudi Arabia’s public debt had reached approximately SAR 1.685 trillion by the end of the second quarter of 2026, representing a debt-to-GDP ratio of around 34%. Despite rising debt levels, credit rating agencies have maintained their assessments, with Saudi Arabia holding an A+ rating from S&P and Aa3 from Moody’s, both with stable outlooks.
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