RIYADH: The National Debt Management Center has announced the successful arrangement of a Shariah-compliant revolving credit facility valued at SR9.4 billion ($2.5 billion).

This three-year facility is intended to support the Kingdom’s general budgetary requirements and was secured with the participation of three regional and international financial institutions.

This credit arrangement is in line with Saudi Arabia’s medium-term public debt strategy. It aims to diversify funding sources to meet financing needs at competitive terms, while adhering to robust risk management frameworks and the approved annual borrowing plan.

In November, Saudi Arabia approved its state budget for the fiscal year 2025, with projected revenues of SR1.18 trillion and expenditures totaling SR1.28 trillion, resulting in a deficit of SR101 billion.

The Finance Ministry forecasts a robust 4.6 percent growth in the Kingdom's real gross domestic product for 2025, a significant increase from the 0.8 percent growth expected in 2024. This growth is anticipated to be driven by a rise in activities within the non-oil sector, according to the ministry’s statement.

Saudi Arabia’s total debt is projected to reach SR1.3 trillion in 2025, or 29.9 percent of GDP, which is considered a sustainable level to meet the country’s financing needs.

Revised projections for the 2024 budget indicate a deficit of SR115 billion, with total debt expected to rise to SR1.2 trillion, or 29.3 percent of GDP.

The 2025 budget places a strong emphasis on maintaining essential services for citizens and residents while increasing investment in key projects and sectors. The government's focus remains on preserving fiscal stability, ensuring long-term sustainability, and managing reserves effectively. By maintaining manageable debt levels, Saudi Arabia aims to safeguard its resilience against unforeseen economic challenges.

RIYADH: Saudi Arabia’s Ministry of National Guard has increased local spending on maintenance, repairs, and operations for its ground systems from 1.6 percent to 100 percent over the past four years.

The milestone was celebrated at a signing ceremony for new localization contracts under the patronage of the Minister of National Guard, Prince Abdullah bin Bandar, with the participation of the General Authority for Military Industries. 

The initiative is part of a broader effort to achieve sustainable development within the Kingdom’s military industries, enhance local capabilities, and support Vision 2030 goals. 

The ministry has signed a series of contracts with local companies to improve the sustainability and efficiency of military systems. These agreements aim to strengthen military readiness, contribute to economic growth, and create job opportunities within Saudi Arabia.

These pacts include a sustainability contract for integrated weapons systems and heavy weaponry with SAMI Defense Systems Co., an electronic systems sustainment agreement with SAMI Advanced Electronics Co., and a vehicle sustainability deal with Alkhorayef Industries Co. 

In conjunction with these contracts, GAMI announced signing two industrial participation deals to enhance local content and build national industrial capabilities. 

The first agreement, signed with SAMI Defense Systems Co., focuses on the sustainability of integrated weapons and heavy weaponry, aiming to achieve over 60 percent industrial participation and create new employment opportunities for Saudi professionals. 

The second contract, signed with Alkhorayef Industries Co., pertains to the sustainability of military vehicles and aims to encourage investment in qualified industrial activities to strengthen the defense sector. 

The ministry highlighted the economic benefits of the localization program, including creating over 800 direct jobs and empowering national companies to take a central role in the Kingdom’s defense ecosystem. 

Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization, the establishment of innovation laboratories for spare parts manufacturing, and progress in achieving over 60 percent industrial participation in contracts. 

These initiatives also contribute to enhancing local capabilities and fostering innovation within the Kingdom’s defense sector. 

The event was attended by several high-ranking officials, including Minister of Industry and Mineral Resources Bandar Alkhorayef, GAMI Governor Ahmed Al-Ohali, Governor of the General Authority for Defense Development Faleh Al-Suleiman, and President of the General Authority for Civil Aviation Abdulaziz Al-Duailej. 

Senior representatives from the companies awarded the contracts. Military and civilian officials from the Ministry of National Guard were also present.