Saudi Arabia Seeks $8 Billion Loan Amid War-Related Economic Strains

Saudi Arabia is seeking to raise at least $8 billion from a new loan as it grapples with the economic fallout from the Iran war. The kingdom's National Debt Management Center has begun sounding out banks about a potential deal, while state-backed oil major Saudi Aramco is holding similar discussions.

The latest outreach comes after the NDMC said in May it had completed its annual borrowing plan, securing roughly 90% of its financing needs. However, additional requirements will be met primarily through private channels and local markets.

Saudi Arabia has emerged as one of the most active emerging-market borrowers, raising about $6 billion in domestic and international bonds this year. Aramco has raised another $4 billion, while its sovereign wealth fund raised $7 billion in May.