#Saudi s Signal Intention to Ease Pace of Bond Sales Growth - Bloomberg

Saudis Signal Intention to Ease Pace of Bond Sales Growth - Bloomberg

Saudi Arabia sees stable to lower international bond sales in 2026, signaling a possible halt to three years of rapid growth in borrowing activities that have made the kingdom one of the busiest sovereign issuers in global emerging markets.

The Ministry of Finance approved borrowing plans for the year that equate to selling about $14 billion to $20 billion in international bond markets, according to the National Debt Management Center. That would be roughly on par with 2025 at the high end and the lowest since 2022 on the low end, should the kingdom make good on its targets.

Total financing needs are expected to drop to $58 billion from $107 billion last year, when the kingdom more than doubled its initial budget deficit estimate — to 5.3%. The fiscal shortfall this year is projected to contract to 3.3% of GDP.

The government often overshoots on its economic goals and borrowed in excess of its initial 2025 plan last year. Indeed, Goldman Sachs Group Inc. has predicted the Saudis will issue a record $25 billion of international debt this year, while Bank of America has said it sees stronger diversification of the funding mix into instruments such as syndicated loans.

Saudi Arabia has widely telegraphed plans to continue borrowing to plug a fiscal gap stemming from a combination of lower oil revenues and elevated spending on Crown Prince Mohammed bin Salman’s $2 trillion economic diversification agenda. But Finance Minister Mohammed Al-Jadaan hinted recently that the kingdom could take a more cautious stance on the pace of issuance, saying the sovereign is “very careful” not to oversupply the market.

For 2026, Saudi Arabia’s focus will be on dollar-denominated debt in international markets, with flexibility to issue in other currencies, the NDMC said. Still, net issuance in US dollar public markets is expected to drop as the government continues to diversify funding including in private markets, it added.

More than half of total financing activities last year were done via private markets, while less than 20% was made up of international sales, according to the NDMC. The rest was via local public markets.

Similarly for 2026, the government intends to tap private markets for as much as 50% of its total expected financing needs. The remainder will be financed through a mix of international and local markets. That would cover this year’s expected budget deficit, in addition to principal repayments.

#Saudi Stocks Drop Most Since April as Geopolitical Strife Mounts - Bloomberg

Saudi Stocks Drop Most Since April as Geopolitical Strife Mounts - Bloomberg

Saudi Arabian equities fell the most in almost nine months as investors considered the possible fallout of geopolitical tensions in Yemen, Iran and Venezuela.

The Tadawul All Share Index dropped 1.8% on Sunday, the most since US President Donald Trump’s tariffs roiled global markets in April, with all industry groups in the red. The benchmark also closed at its lowest since Oct. 2023, a level it has hovered around for much of the past month.

Stocks in Qatar, Oman and Bahrain ticked slightly higher.

The moves came as the kingdom called on Yemen’s southern factions to enter into talks in Riyadh as clashes continued between Saudi-backed forces and separatist rivals backed by the United Arab Emirates. Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei pushed back against deadly protests he blamed external forces for inciting.

“The current weakness in the Saudi market reflects the regional geopolitical issues, even though there’s no indication of confrontation or escalation at this time, especially related to Yemen,” said Junaid Ansari, head of research and strategy at Kamco Investment Co. “The situation in Iran is also affecting sentiment and adding to the geopolitical risk premium for the region.”

Any impact on stocks from potential oil market disruptions following the ouster of Venezuela’s President Nicolás Maduro would only be felt from Monday, when crude trading resumes after the weekend, Ansari said.

Saudi Arabian equities are coming off their worst annual performance since 2015 amid a confluence of factors including subdued oil prices that restrain public spending and company earnings.

The outlook for 2026 performance is mixed, with some analysts pointing to upside from potential changes in foreign ownership limits and others saying the market generally lacks momentum.

Most Gulf markets in red on weak oil prices | Reuters

Most Gulf markets in red on weak oil prices  | Reuters

Most stock markets in the Gulf closed lower on Sunday, in response to Friday's fall in oil prices as investors weighed oversupply concerns against geopolitical risks.

The Brent benchmark lost nearly 20% in 2025, the steepest fall since 2020. It was the third straight year of losses for Brent, the longest streak on record.

Saudi Arabia's benchmark index (.TASI), opens new tab fell 1.8%, with Al Rajhi Bank (1120.SE), opens new tab losing 1.7% and Saudi National Bank (1180.SE), opens new tab - the country's biggest lender by assets - dropping 2.3%.

Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab was down 1.6%.

OPEC+ kept oil output unchanged on Sunday after avoiding discussions of the multiple political crises affecting the producer group's members, from the Middle East as well as Russia, Iran and Venezuela.

Saudi Arabia's finance minister has approved the kingdom's 2026 borrowing plan, with financing needs of about 217 billion riyals ($57.86 billion), the finance ministry said on Saturday, as the Gulf country pushes ahead with its economic diversification plans.

The world's top oil exporter is more than halfway through its Vision 2030 plan that calls for hundreds of billions of dollars in government investment to cut its economic dependence on hydrocarbon revenue.

In Qatar, the index (.QSI), opens new tab added 0.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 0.7%.

The Qatari market has shown resilience, bolstered by an economy less reliant on oil and heavily anchored in liquefied natural gas (LNG). This diversification acts as a built-in buffer against short-term oil price swings, said Rania Gule, senior market analyst at XS.com – MENA.

"Accordingly, I expect the Qatari market to maintain relatively stable performance, with gradual upside potential should global energy prices improve, without being exposed to sharp or sudden fluctuations."

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 2.2%, with Commercial International Bank (COMI.CA), opens new tab retreating 2.4%.