LONDON: Gulf states will need to raise as much as $300 billion in funding over the next three years with the lion’s share going to Saudi Arabia, according to a new report.
High oil prices mean that the funding needs of Gulf borrowers are accumulating at a slower pace, S&P Global Ratings said in a report.
Still, GCC government net debt positions have significantly deteriorated since 2015 and now account for a much bigger proportion of fiscal revenue, the ratings agency said.
Saudi Arabia’s deficit alone accounts for about half of the Gulf states’ expected $300 billion financing needs — but as a proportion of overall GDP it is broadly in line with Abu Dhabi and Oman.
Rising interest rates and tighter financing conditions may present a challenge to some regional boomers according to S&P.
“Changes in domestic and international liquidity conditions could present challenges for sovereign issuance and tilt the financing balance toward assets from debt, or increase debt-servicing costs, as is particularly the case in Bahrain (where interest payments account for 23 percent of government revenue),” said S&P.
“We note that global liquidity is becoming scarcer and more expensive, while regional banking sector liquidity remains adequate.”
The rising cost of debt may mean that some regional governments will increasingly focus on asset sales.
Perceived regional geopoitical risk, most notably surrounding tensiions between Iran and Saudi Arabia along with its Gulf allies as well as the standoff between Qatar and some of its neighbors, could make some international investors wary of the region and demand a higher risk premium.
S&P expects debt issuance to account for some 70 percent of the $300 billion financing requirement of the Gulf states.
The ratings agency estimates that gross debt in the region has increased from an average of 14 percent of GDP at the end of 2014 to an estimated 38 percent of GDP by the end of 2018.
Bahrain and Qatar are expected to finance the vast majority of their deficits through debt, while Dubai and Abu Dhabi are likely to rely more on their assets.
S&P expects Bahrain’s net debt to have nearly tripled between 2015 and 2021 while Oman would slip into a net debt position in 2019.
Saudi Arabia’s net assets are forecast to have nearly halved to 65 percent of GDP by 2021.
Saudi Arabia to lead $300bn regional funding drive says S&P
Saudi Arabia to lead $300bn regional funding drive says S&P
- GCC states have $300bn requirement
- Bahrain and Qatar expected to rely on debt to plug deficits
Saudi Maaden reports 156% profit surge to $2bn on strong commodity prices, record production
RIYADH: Saudi mining and metals company Maaden has reported a 156 percent jump in its net profit attributable to shareholders for 2025, driven by higher commodity prices, record production volumes, and a one-off bargain purchase gain.
The state-backed giant posted a net profit of SR7.35 billion ($1.95 billion) for the full year 2025, an increase from SR2.87 billion in the previous year. The firm’s revenue surged by 19 percent to SR38.58 billion, up from SR32.55 billion in 2024.
This comes as Saudi Arabia steps up efforts to expand its mining sector as a pillar of economic diversification, encouraging international participation and private investment to unlock the Kingdom’s estimated $2.5 trillion in untapped mineral resources under Vision 2030.
In a statement on Tadawul, the company said: “Performance was led by record phosphate production, near record aluminum production, an increase in all three of Maaden’s main output commodity prices.”
The performance was also fueled by a 60 percent increase in gross profit, which reached SR14.79 billion. In its annual results announcement, Maaden attributed the top-line growth to “higher commodity market prices for phosphate, aluminum and gold business units,” as well as increased sales volumes in its phosphate and aluminum segments. This was partially offset by slightly lower sales volume in the gold unit.
Maaden’s CEO, Bob Wilt, hailed 2025 as a transformative year for the company, marked by strategic growth and operational excellence. “This was a great year for Maaden’s strategic growth. We delivered strong financial results and sustained operational excellence across the business,” he said in a statement.
“This was driven by growth in production across all businesses, including record-breaking DAP (di-ammonium phosphatevolumes), disciplined cost control across and a clear commitment to our role as a cornerstone of the Saudi economy,” Wilt added.
Profitability was further bolstered by an increased share of net profit from joint ventures and an associate. This included a one-off bargain purchase gain of SR768 million related to Maaden’s investment in Aluminium Bahrain B.S.C. The company also benefited from lower finance costs.
The fourth quarter of 2025 was strong, with Maaden swinging to a net profit of SR1.67 billion, compared to a loss of SR106 million in the same period of the prior year. Quarterly revenue rose 7 percent to SR10.64 billion.
The firm achieved record production of di-ammonium phosphate, reaching 6.72 million tonnes for the year, a 9 percent increase. Aluminum production remained near-record levels, while the company added a net 7.8 million ounces to its reportable gold mineral resources through discovery and resource development.
The phosphate division saw sales jump 17 percent to SR20.77 billion, with the earnings before interest, taxes, depreciation, and amortization margin expanding to 47 percent. The aluminum business reported a 9 percent increase in sales to SR10.99 billion, with EBITDA more than doubling in the fourth quarter.
Looking ahead, Wilt emphasized that the pace of growth will accelerate as the company advances key initiatives, including the Phosphate 3 Phase 1 and Ar Rjum projects, which remain on budget and schedule. Maaden has also secured a gas supply for its future Phosphate 4 project.
“This pace of growth will only accelerate. Not only as we advance projects and increase the scale of our exploration program, but as we continue to grow production and implement technology that will further modernize, streamline and unlock value,” Wilt added.
Earnings per share for the year rose sharply to SR1.91, up from SR0.78 in 2024. Total shareholders’ equity increased by 18.7 percent to SR61.59 billion.
