Saudis Signal Intention to Ease Pace of Bond Sales

Group 1 - Saudi Arabia is expected to see a decrease in international bond sales in 2026, marking a halt to three years of rapid growth in borrowing activities [1] - The Ministry of Finance has approved borrowing plans for 2026 that involve selling approximately $14 billion to $17 billion in international bond markets, which is lower than the high end of 2025 and the lowest since 2022 [2] - Total financing needs for the kingdom are projected to drop to $58 billion from $107 billion last year, with the fiscal shortfall expected to contract to 3.3% of GDP [3] Group 2 - The government has a history of overshooting its economic goals, with predictions from Goldman Sachs indicating a record $25 billion of international debt issuance this year [4] - Saudi Arabia plans to continue borrowing to address a fiscal gap caused by lower oil revenues and high spending on the $2 trillion economic diversification agenda [5] - For 2026, the focus will be on dollar-denominated debt in international markets, with a significant portion of financing expected to come from private markets [6][7]