Fitch Ratings has released a forecast indicating a robust growth trajectory for Saudi Arabia's debt capital market, projecting it could hit 600 billion by the end of 2026. The report highlights positive developments indicating that this optimistic outlook is underpinned by a notable rise in outstanding debt, which surpassed 520 billion in 2025.
Foreign Investors in the Saudi Debt Market
The report emphasizes the increasing role of foreign investors in the Saudi debt market, with their participation now exceeding 10 percent of the government's outstanding direct domestic issuance in primary local markets. This influx of foreign capital is a testament to the attractiveness of Saudi sukuk and the broader investment landscape in the region.
Growth in the Debt Capital Market
Fitch's analysis suggests that the growth in the debt capital market is not only a reflection of the country's economic resilience but also highlights the expanding opportunities for investors looking to tap into the burgeoning financial sector in Saudi Arabia. As the market continues to evolve, it is expected to play a crucial role in supporting the nation's economic diversification efforts.
The Russian government recently announced plans to significantly increase debt issuance to address budget shortfalls, contrasting with Saudi Arabia's growing debt capital market. For more details, see debt issuance plans.
