Saudi Arabia’s National Debt Management Center has approached international banks to raise a fresh loan of about six to eight billion dollars. State oil giant Saudi Aramco is also pursuing a similar borrowing conversation with its banking partners.
The financing efforts come as the kingdom absorbs the economic fallout from the war between the United States, Israel and Iran, which has caused Saudi Arabia’s economy to contract in the second quarter by the steepest margin since the pandemic. The conflict has disrupted shipping through the Strait of Hormuz, pushing up insurance and freight costs and increasing import expenses.
The proposed five-year loan is part of a larger annual borrowing plan targeting roughly fifty-eight billion dollars as Riyadh diversifies away from oil income and reserve drawdowns. Both the sovereign loan and Aramco’s talks remain preliminary, with terms unsettled and no certainty that they will be finalized.