Saudi banks are poised to inject between $65-75 billion a year (244-281 billion riyals) in new corporate loans in 2025 and 2026, with the bulk of it going to the real estate and utilities sectors, according to S&P Global Ratings. The agency's report emphasized that Saudi listed companies, including unrated ones, will need to refinance or repay between $45 billion and $55 billion in debt between the second quarters of 2025 and 2026, compared to about $54 billion in 2024, while capital expenditure for Saudi listed companies remains between $85 billion and $95 billion during 2025-2027, compared to $85 billion in 2024, increasing the demand for cross-border lending and issuance.

The agency's report emphasized that Saudi listed companies, including unrated ones, will need to refinance or repay debt between 2025 and 2026, compared to $85 billion in 2024, which increases the demand for cross-border lending and issuance. The agency pointed out that capital expenditure needs will remain high, with part of the investments funded by cash flows, while strong reliance on bank financing continues, which supports capital market activity, noting that about 90% of the expected capital expenditure belongs to companies owned directly or indirectly by government entities, which supports the availability of financing sources.

The agency pointed out that the capital expenditure needs will remain high, with part of the investments funded by cash flows, while strong reliance on bank financing continues, which enhances capital market activity. <S&P Global expects capital spending by non-oil companies to remain strong, in line with the targets of Kingdom Vision 2030, especially in the materials, telecoms and utilities sectors, emphasizing that refinancing risks remain manageable for rated companies, with government companies accounting for the bulk of outstanding debt through 2025 due to their easy access to financing markets.
The report explained that there is a rise in short-term debt for non-state-owned companies, while state-owned companies accounted for about half of 2025 debt maturities, which is expected to account for 60% to 65% of debt maturities during 2026-2029.

The report said that refinancing risks remain manageable for rated companies, with state-owned companies accounting for the bulk of debt maturities in 2025 due to their easy access to financing markets.