Saudi Arabia’s corporate and sovereign debt market is sprinting ahead, outstripping equity by a three-to-one margin as the kingdom’s largest entities tap capital markets to fund expansion. According to Moody’s, debt issuances have topped $15 billion in the first half of 2025 alone.
The Public Investment Fund (PIF), energy titan Aramco, and utilities powerhouse Saudi Electricity Company (SEC) are leading the charge. Between 2020 and mid-2025, Saudi corporates raised over SAR 370 billion ($99 billion) in debt, while equity offerings lagged at SAR 104 billion.
The nearly $1 trillion PIF has poured more than SAR 642 billion into non-oil sectors over the past five years, targeting retail, consumer goods, telecoms, financial services, and emerging industries like aerospace, manufacturing, metals, mining, automotive, and technology. High-profile investments include ALAT, Riyadh Air, and Tahakom Investment Company. Moody’s projects PIF’s investments could hit SAR 1 trillion between 2025 and 2030, financed through a mix of internally generated cash flow, capital recycling, loans, debt, government capital injections, and asset transfers.
PIF’s latest move saw it tap international markets with a €1.65 billion dual-tranche green bond, marking its second issuance in under a month. Meanwhile, Aramco continues to dominate energy-sector debt volumes, raising $3 billion in September via a five- and 10-year sukuk, following a $5 billion multi-tranche dollar bond in May. Utilities are also active players, with SEC raising $2.75 billion through a dual-tranche sukuk earlier this year.
“Growth momentum has been strong across real estate, services, manufacturing, and transportation since 2021, unlocking major potential for corporates,” said Moody’s analyst Aziz Al Sammarai. Investments are primarily driving capacity expansion, infrastructure, and tech upgrades, naturally pushing overall debt higher.
Sovereign debt is also on the rise as the kingdom balances Vision 2030 ambitions with fiscal prudence. With moderate deficits projected around 5% this year and 3–4% in the coming years, debt could climb from 26% of GDP in 2024 to 36% by 2030, Moody’s warns, reflecting the trade-off between diversification spending and maintaining financial stability.
