Saudi Arabia adopts the “borrowing plan” to seize opportunities and finance projects
Proactive Operations reduced its financial needs to $12 billion
Thursday – 4 Rajab 1444 AH – January 26, 2023 AD Issue No [
The Saudi government continues its financing operations to complete its strategic projects (Middle East)-
Riyadh: «Asharq Al-Awsat»--
Saudi Arabia has adopted an annual borrowing plan for the current year, with an estimated value of 45 billion riyals ($12 billion), given the reduction of part of its total financing needs through proactive operations that took place during 2022 by approximately 48 billion riyals ($12.8 billion), with the aim of seizing the available opportunities according to market conditions and financing Some strategic projects.
And the Saudi Ministry of Finance announced yesterday (Wednesday) that Muhammad Al-Jadaan, Minister of Finance, approved the annual borrowing plan for the year 2023, after it was approved by the Board of Directors of the National Center for Debt Management during its recent meeting.
The plan included the most prominent developments in public debt and debt market initiatives for the past year, the current year’s financing plan and its guidelines, in addition to the 2023 calendar of sukuk issuances within the country’s local sukuk program in Saudi riyals.
Despite the expectations of achieving budget surpluses during 2023, the Kingdom is moving towards continuing local and international financing operations with the aim of paying the due principal, and in the medium term, and seizing the available opportunities according to market conditions to implement additional financing operations in a proactive manner to pay the principal dues for the coming years, And financing some strategic projects. It also aims to exploit market opportunities to implement alternative government loan operations that would enhance economic growth such as financing capital and infrastructure projects.
The National Center for Debt Management will continue to monitor the local and international markets, to take advantage of the possibility of entering into additional proactive financing operations according to market conditions, with the aim of strengthening Saudi Arabia’s presence in the debt markets and enhancing the characteristics of the debt portfolio, taking into account the movement of markets and risk management in the government debt portfolio.
Last December, Saudi Arabia expected that total revenues for the year 2023 would reach about 1.123 trillion riyals ($299 billion), reaching about 1.205 trillion riyals ($321 billion) in 2025, while the total expenditures for 2023 are estimated to be 1.114 trillion. riyals ($304 billion), down to approximately 1.134 billion riyals ($302 billion) in the next year, with surpluses of about 9 billion riyals ($2.4 billion), representing 0.2 percent of GDP.
And the Minister of Finance stated that the positive expectations of the Saudi economy for the current year come as an extension of the positive developments in the actual performance during the first half of 2022, as estimates of economic growth rates in the country for 2023 and the medium term were revised, indicating that preliminary estimates indicate real GDP growth of 3.1 percent. Percent, supported by its growth in non-oil activities with the private sector continuing to lead economic growth, contributing to increasing job creation in the labor market, in addition to improving the country’s trade balance, continuing to implement programs to achieve Vision 2030, and recording economic activities with positive growth rates.
He added that this comes thanks to the measures taken by the government to support and enhance economic activity, and reduce the burden of living through policies and measures to contain global inflation rates by setting a ceiling for fuel prices, in addition to ensuring an abundance of food products in local markets, and increasing funds for social protection programs, which created a kind of certainty and reassurance among citizens.