Saudi Arabia Seeks Billions in Loans Amid Iran Conflict
Saudi Arabia's Crown Prince Mohammed bin Salman is facing growing financial pressure amid regional tensions with Iran. The kingdom, known for its vast oil reserves and significant investments around the world, is seeking to raise billions in loans.
According to a Bloomberg report, Saudi Arabia plans to borrow at least $8 billion through fresh borrowing. This comes as the country's economy faces challenges due to disruptions in oil exports and trade routes, particularly in the Strait of Hormuz.
The economic pressure has increased amid the Iran-related regional conflict. Saudi Arabia is now exploring different sources of funding as it looks to raise at least $8 billion through fresh borrowing. This is part of its efforts to fund Crown Prince Mohammed bin Salman's ambitious Vision 2030 programme, which aims to reduce the country's dependence on oil and expand sectors such as tourism and manufacturing.
The country's National Debt Management Center (NDMC) is reportedly in talks with banks for a new syndicated loan. Saudi state-owned oil giant Aramco is also exploring similar financing options. The need for additional funds has emerged as regional conflict has put pressure on oil exports, trade routes, and supply chains.
Saudi Arabia's oil sector has faced a sharp decline, with the country's economy recording its biggest quarterly contraction since the Covid-19 pandemic. However, crude oil price increases have provided some relief to Saudi Arabia by supporting its oil revenues. The country's defence budget was around $75.8 billion in 2024 and increased to about $78 billion in 2025.