Saudi Arabia Launches $12 Billion Bond Sale

Saudi Arabia raised $12 billion through a successful three-part bond sale, with investor demand exceeding $37 billion, as it seeks to cover a projected budget deficit of $27 billion for 2025. The bonds, issued in three tranches (three, six, and ten years), will aid in financing the kingdom's ambitious Vision 2030 agenda, which requires substantial funding for projects including new cities and hosting global events like the World Cup. Meanwhile, the nation's sovereign wealth fund secured a $7 billion Islamic loan to support similar initiatives. The government's financing needs for 2025 are estimated at approximately 139 billion riyals, with a significant portion earmarked for covering the deficit and maturing debt. In addition, Saudi Arabia plans to introduce residential mortgage-backed securities to improve homeownership affordability amidst rising property prices. This initiative reflects the government's commitment to increasing homeownership rates in line with Vision 2030's goals.