Saudi Arabia’s ongoing financing needs, coupled with continued monetary easing, are expected to support borrowing next year, CI Capital said in a report.

Local liquidity pressures may prompt further easing, making the securing of additional funding increasingly imperative.

Saudi Arabia is set to be the key beneficiary of lower interest rates, as it remains the region’s most active issuer in international debt markets.

The kingdom’s public debt is projected to rise to 36% of GDP in 2026, up from 34% this year, the consultancy said.

Oil and non-oil GDP are forecast to expand by 5.5% and 4.8% respectively, in 2026, led primarily by tourism-related activities.

Commitment-driven events, such as World Expo 2030 and FIFA World Cup 2034, will continue to spur infrastructure development, the report added.

According to CI Capital, the anticipated lifting of the foreign ownership limit from the current 49% will be a potential growth catalyst, as authorities plan to revisit these limits in 2026.

(Editing by Seban Scaria seban.scaria@lseg.com)