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Saudi Arabia May Tap Debt Market in January to Cover Deficit

  • Kingdom’s total debt requirement up to $32 billion in 2020
  • Seeks to keep ratio of about 45% overseas sales, 55% local
Saudi Arabia Opens to Tourists And Their Foreign Ways
Photographer: Faisal Al Nasser/Bloomberg
Updated on

Saudi Arabia may tap international debt markets as early as next month as it seeks funding to help bridge its widening budget deficit.

Most of the debt will be local and about 45% will be raised overseas through sukuk and conventional bonds, Fahad Al-Saif, head of the Finance Ministry’s debt management office, said in an interview on Wednesday. The country will also refinance roughly 44 billion riyals ($11.7 billion) of existing local debt, he said.