Saudi Arabia has reportedly sought a rare $10 billion loan from Wall Street, with negotiations currently underway for the deal. According to sources familiar with the matter, the Saudi Ministry of Finance is in discussions with several banks, including major lending institutions on Wall Street, regarding this loan. Due to the sensitive nature of private information involved, these sources have chosen to remain anonymous.
It has been indicated by informants that a final decision has not yet been made, and Saudi Arabia may opt to cancel the loan at the last minute if the terms are not favorable or if market conditions prove to be unfavorable. This move is seen as the latest effort by Saudi Crown Prince Mohammed bin Salman to raise funds for the country’s diversification plans.
Up until now, Saudi Arabia has primarily focused on raising funds through bond issuances, making it one of the most active sovereign debt issuers in emerging markets. Since 2025, Saudi Arabia has issued nearly $20 billion worth of bonds, slightly below the record high set for the entire year in 2017.
Saudi Arabia’s actions to seek sovereign loans are relatively uncommon. According to Bloomberg data, since 2016, Saudi Arabia has completed at least two large loan transactions worth $10 billion or more each.
The country’s key entities continue to advance large transactions, with its Public Investment Fund being the biggest contributor in the $36 billion acquisition of Electronic Arts Inc. in September.
The Saudi Ministry of Finance has not responded to requests for comments. Officials had previously stated that they are exploring alternative financing solutions as part of Saudi Arabia’s diversification plan for funding sources.
Last week, Saudi Arabia predicted that the government’s 2025 budget will reach $65 billion, more than double the previous forecast, citing reduced income due to weak oil prices and government overspending.
Prior to this revision, the Saudi government had planned to borrow around $37 billion this year, with the majority being raised through capital markets and around 30% through private channels.
A report released by Fitch Ratings last week suggested that a larger portion of Saudi Arabia’s future financing may come from non-market channels due to its significant borrowing needs and increased debt issuances potentially raising costs.