Saudi Arabia Seeks Fresh Funding Amid Iran War Economic Fallout

Saudi Arabia is seeking additional funding to mitigate the economic fallout from the Iran war. The kingdom's National Debt Management Center (NDMC) has started sounding out banks about raising at least $8 billion through a fresh loan, while state-backed oil giant Saudi Aramco is discussing possible financing with lenders.

The move comes as the conflict disrupts shipping through the Strait of Hormuz, increases import costs, and strains supply chains. The war has also targeted Saudi energy infrastructure and ships in the Red Sea, adding pressure on the kingdom's oil industry.

Saudi Arabia's economy suffered its steepest contraction since the pandemic in the second quarter, with the oil sector shrinking by nearly 25%. The country recorded a deficit of $9.1 billion in the same period.