Riyadh, January 3, 2025 – The National Debt Management Center (NDMC) of Saudi Arabia has successfully concluded the arrangement of a significant Shariah-compliant revolving credit facility, valued at $2.5 billion (approximately SAR 9.4 billion). The facility, which has a three-year tenure, is primarily intended to meet the Kingdom's general budgetary needs and further solidify its strategic financial position.
This credit facility, a key milestone in Saudi Arabia's broader fiscal management framework, has been orchestrated with the participation of three prominent regional and international financial institutions. These institutions bring a wealth of expertise and a deep understanding of the Kingdom's financial landscape, ensuring that the facility is both competitive in terms of pricing and structured in a way that aligns with the Kingdom's long-term debt management objectives.
The new credit facility forms an integral part of Saudi Arabia’s medium-term public debt strategy, which focuses on diversifying funding sources to effectively meet the Kingdom’s financing requirements. By tapping into this revolving facility, the government aims to secure favorable terms and manage its financial obligations in a manner that supports fiscal stability and economic growth. This strategy is guided by a robust risk management framework, ensuring that all debt instruments align with the approved annual borrowing plan and remain within the government's established risk parameters.
Moreover, the arrangement reflects the government's ongoing commitment to capitalizing on market opportunities to explore alternative financing mechanisms. This includes funding critical development and infrastructure projects that are vital to Saudi Arabia's Vision 2030 transformation. By leveraging this credit facility, the Kingdom is not only enhancing its ability to meet immediate financial needs but is also reinforcing its capacity to continue funding long-term initiatives that will drive economic progress and contribute to the Kingdom's diversification efforts.
The strategic execution of this revolving credit facility underscores Saudi Arabia’s commitment to maintaining a stable financial environment while pursuing ambitious development goals, ensuring that the Kingdom remains on a steady path towards achieving its Vision 2030 objectives.