#SaudiArabia to tap international debt markets as deficits return | Reuters

Saudi Arabia to tap international debt markets as deficits return | Reuters

Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, the finance ministry said, against a backdrop of lower oil prices and the country's extended oil production cuts.

The finance ministry said in a preliminary budget statement on Saturday that it expected a budget deficit of 2% of gross domestic product (GDP) this year rather than an earlier projected surplus, and a deficit of 1.9% of GDP in 2024.

Both deficits are estimated at 161 billion riyals ($43 billion).

Saudi Arabia is working to prepare an annual borrowing plan in accordance with a medium-term debt strategy and "access global debt markets to enhance the kingdom's position in international markets", the finance ministry said.

The country still depends heavily on oil revenues, even though it has spent heavily on initiatives to diversify its economy.