Saudi Arabia is considering raising at least $8 billion through a fresh loan, as the kingdom looks to diversify its funding sources amid the financial fallout from the Iran war.
Multiple accounts on X, citing people familiar with the matter, reported that Saudi Arabia's National Debt Management Center (NDMC) has begun sounding out international banks for a potential financing deal.
The kingdom is seeking a five-year US dollar-denominated syndicated loan in the range of $6 billion to $8 billion, according to the reports. The borrowing comes as the regional conflict puts additional pressure on Saudi Arabia's fiscal position.
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The proposed loan forms part of Saudi Arabia's broader 2026 borrowing programme, which targets around SAR 217 billion ($58 billion) in financing for the year. The plan was adopted in January, before the conflict with Iran began.
Of the total borrowing requirement, about $44 billion is expected to cover the budget deficit, while roughly $13.87 billion is earmarked for debt repayments.
The conflict with Iran, which began in late February, has complicated Saudi Arabia's fiscal outlook, with higher military spending and regional supply-chain disruptions adding pressure to government finances.
Saudi Arabia has already been active in international debt markets this year. The kingdom raised around $49.34 billion through bonds and sukuk in the first half of 2026. In August, it also completed a domestic sukuk issuance worth SAR 9.518 billion.
The proposed syndicated loan would provide another source of funding as Riyadh seeks greater flexibility in managing its finances amid the regional turmoil.
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Saudi Arabia's public debt stood at around SAR 1.685 trillion at the end of the second quarter of 2026, taking the debt-to-GDP ratio to roughly 34%.
Despite the increase in borrowing, major credit-rating agencies have maintained their assessments of the kingdom. S&P rates Saudi Arabia A+, while Moody's has assigned an Aa3 rating, with both agencies maintaining stable outlooks.
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