Saudi Corporates Expected to Increase Cross-Border Issuance as Financing Needs Grow – Report
Saudi Corporates are expected to increase Borser-Border issuance in the next few years due to higher capital expenditure investments, according to new sources from S & P Global Ratings.
report, Saudi Corporates to Judge Eye Cross-Border Issuance to Pay Us Money When Banks Turn to Foreign DebtCorporate Capital projects are between US $ 85 billion and US $ 95 billion per year from 2025 to 2027. Where most loan markets and bank bond markets are set to remain strong.
About 90 percent of this investment is expected to come from state-owned enterprises (SOSEs) and subsidized companies, many of which are linked to the Public Investment Fund (PIF). The agency notes that this focus should help ensure the organization’s lending capacity while increasing overall market activity.
IS & P expects Saudi Arabia’s economy to grow at an average rate of 3.5 percent between 2025 and 2028, supported by high oil production and strong sector performance. The company’s profit is forecast to remain stable despite the low oil prices and the increase in the prices of domestic animals, with the continuous methods of expenses and income distribution.
The report also revealed that Saudi banks will play a major role in financing this expansion, but will rely heavily on foreign debt to do so. Net foreign debt is expected to increase to about 6 percent of total loans by the end of 2026, compared to 1 percent in 2024
The organization’s activity in global credit markets has already accelerated. As of 2017, non-financial firms issued approximately US$ 78.6 billion in foreign currency obligations. The majority of this total (about 91 percent) comes from the times or their costs, led by Aramco’s US $ 43 billion in emissions.
The issuance of the private sector remains limited to about US $ 7 billion, but S & P expects this story to grow slowly as more companies seek to convert capital, access to recapitalization, and reach global investors.
This study shows that the ongoing legal and regulatory changes, and the stability of companies, and the stability provided by the peg of the Riyal to the US Dollar have improved the country’s appeal to international lenders. Combined with the growing popularity of Sukuk among Asian and middle class investors, these factors are likely to support the continued rise of the cross-border currency.
IS & P concludes that as the projects of Vision 2030 develop, both companies and banks will increasingly depend on the Global financial markets to expand with financing, which shows the next phase of the economy of Saudi Arabia.
