Saudi Arabia issues $12bn 3-part bond: NDMC

The transaction is part of NDMC’s strategy to diversify the investor base and meet Saudi Arabia’s financing needs. Shutterstock
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Updated 07 January 2025
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Saudi Arabia issues $12bn 3-part bond: NDMC

  • NDMC said transaction is part of its strategy to diversify Kingdom’s investor base
  • Three-tranche bond includes selling $5 billion, $3 billion and $4 billion in tenors of three, six and 10 years, respectively

RIYADH: Saudi Arabia issued a $12 billion triple-tranche bond under its Global Medium-Term Note Issuance Program, attracting strong investor demand with a total order book of $37 billion.  

The offering, issued by the National Debt Management Center, was oversubscribed threefold and included three tranches: a $5 billion three-year bond maturing in 2028, a $3 billion six-year bond maturing in 2031, and a $4 billion 10-year bond maturing in 2035. 

The NDMC said the transaction is part of its strategy to diversify the Kingdom’s investor base and meet its financing needs efficiently through international debt capital markets.   

The high level of demand reflects investor confidence in Saudi Arabia’s economic strength and its long-term investment opportunities.  

This issuance is part of Saudi Arabia’s broader fiscal strategy. Earlier this month, the NDMC unveiled the Kingdom’s annual borrowing plan, targeting approximately SR139 billion ($37 billion) in funding. 

The plan aims to address an anticipated budget deficit of SR101 billion and refinance SR38 billion in maturing debt, reflecting Saudi Arabia’s commitment to fiscal stability as it continues its economic transformation under Vision 2030.   

As part of the borrowing plan, the NDMC has been marketing international bonds in multiple tranches, with proceeds intended to cover the budget shortfall and service existing debt.   

Pricing for these bonds has been benchmarked against US Treasury bonds, showcasing Saudi Arabia’s strategic approach to accessing global debt markets.  

The NDMC has also been exploring diverse funding sources to support the Kingdom’s fiscal objectives.   

In December, it secured a $2.5 billion Shariah-compliant revolving credit facility with a three-year tenure, arranged with both regional and international financial institutions.   

This facility aligns with the NDMC’s medium-term debt strategy, aimed at diversifying funding channels while supporting Saudi Arabia’s economic growth agenda.  

In January 2024, the NDMC had projected the Kingdom’s total debt portfolio to reach SR1.115 trillion by the end of the year, with financing focused on servicing debt maturities and addressing the 2024 budget deficit.  

In the first half of 2024, Saudi Arabia emerged as the largest dollar debt issuer among emerging markets, excluding China, and the leading global issuer of sukuk, according to Fitch Ratings.   

This surge is attributed to substantial issuances in the first half of 2024, driven by the government’s funding needs and strategic economic projects.  

Fitch Ratings projected a significant increase in dollar-denominated debt issuance by Saudi Arabia in 2025 as oil revenues moderate.   

The Kingdom’s debt capital market is expected to surpass $500 billion in outstanding debt in the medium term, driven by the financing of government giga-projects under Vision 2030, deficit funding, economic diversification efforts, and ongoing structural reforms.  


Artificial intelligence is transitioning into a ‘digital employee’

Updated 27 February 2026
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Artificial intelligence is transitioning into a ‘digital employee’

  • AI can be an effective tool, business leaders tell Arab News
  • Not about jobs, but ‘convergence of human capital and AI’

RIYADH:  Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.

Amidst the current global transformations, an active regional digital environment is emerging.

This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.

Arab News spoke to various business leaders about the emerging shape of the sector.

Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.

Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.

He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.

While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)

Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.

He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”

AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.

Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”

He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.

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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.

The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.

Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”

He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.

Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.

Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.

He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.

In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.

Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)

Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.

Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.

He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.

On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”

There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.

He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.

In the employment sector, Aljumhour expects fundamental changes in standards.

There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.

Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.