The National Debt Management Center announced the issuance of sukuk worth 795 million riyals for the month of November 2020 under the Kingdom’s government sukuk program in order to bridge the budget deficit. The Ministry of Finance stated that the issuance was divided into two tranches, the first amounting to 200 million riyals, so that the final size of the tranche is 982.6 million riyals for sukuk maturing in 2027. While the second tranche amounted to 595 million riyals, the final size of which is 14,561 billion riyals for sukuk maturing in the year 2030. Bonds and sukuk in order to finance the budget deficit, and the volume of sukuk and bonds issued by local banks amounted to about 429 billion riyals, while the volume of public debt reached 848 billion riyals, and according to the Ministry of Finance, the deficit during the current year is expected to reach about 298 billion riyals, and the Minister of Finance was Muhammad Al-Jadaan ruled out in previous statements a few days ago, resorting to international markets this year. It is expected that the budget will achieve better performance in the last quarter of this year with the relative improvement in oil prices and OPEC’s direction to extend the current oil production cut until the end of the first quarter of next year.
The financial position of the Kingdom in 2020
770 billion riyals expected revenue
298 billion riyals expected deficit
848 billion riyals of public debt
429 billion riyals of domestic bonds and sukuk