Indexation and G20 Debt: Saudi Arabia Outlook

Not every country has managed to beat the expectations and outperform during 2021. Let us shed light on Saudi Arabia’s local and hard currency sovereign bonds and Sukuk which are expected to gain some interest in 2022.

Fixed income investors, exposed to the Saudi international debt, had received pleasant news over the announcement of the Saudi budget (i.e. expected USD 24 billion budget surplus in 2022). Saudi Arabia beat the expectations of the International Monetary Fund (IMF) and managed to lower its debt-to-GDP ratio to 29.2% in 2021.

National debt would remain at SAR 938 billion (USD 249.78 billion) and continue at this level to 2024. Saudi Arabia was the Group of Twenty (G20) member country with the second-lowest debt-to-GDP ratio by end of 2021, and such a r...