S&P International anticipated that Saudi banks would offer new loans to corporations price between 65 and 75 billion {dollars} yearly (equal to 244 billion to 281 billion riyals) in the course of the years 2025 and 2026, directed primarily to the true property and utilities sectors.
The company added in a report that its estimates point out that corporations listed within the Saudi market (together with unclassified corporations) will want, in complete, to refinance or repay money owed price between $45 and $55 billion between the second quarter of 2025 and the second quarter of 2026, in comparison with about $54 billion in 2024.
It indicated that the overall capital spending of listed Saudi corporations is anticipated to stay between $85 and $95 billion in the course of the interval 2025 to 2027, in comparison with about $85 billion in 2024, which interprets into a rise in demand for cross-border lending and issuance by corporations.
It anticipated that Saudi corporations’ capital spending wants would stay excessive, and whereas some investments could also be financed from inside money flows, demand for financial institution financing would stay robust. It additionally anticipated that larger financing necessities would proceed to stimulate company capital market exercise.
She identified that roughly 90% of the overall anticipated capital spending pertains to spending by corporations owned instantly or not directly by government-owned entities, and this might assist financing wants.
She stated that the capital spending of non-oil corporations is anticipated to stay excessive, consistent with the ambitions of Imaginative and prescient 2030, and she or he additionally anticipated that the overall capital spending of listed Saudi corporations will stay excessive because of investments within the supplies, communications and utilities sectors.
She defined that refinancing dangers are largely manageable for categorised Saudi corporations, as a result of state-owned corporations, which profit from quick access to financial institution and market financing, account for almost all debt due in 2025.
She identified that the short-term money owed of non-state-owned corporations are additionally on the rise, and as of 2024, we estimate that the debt maturities of state-owned corporations of Saudi corporations listed on the inventory alternate have constituted about half of the maturities in 2025, and that they may characterize about 60% to 65% of debt maturities in the course of the interval 2026 to 2029.
