Saudi Arabia is reshaping its financial future through a more diverse Saudi financing strategy. As the country pushes forward with Vision 2030, experts believe project bonds and securitisation could become vital tools for funding its massive development plans. With liquidity tightening in local banks, financial institutions are turning to capital markets for broader funding options.
HSBC, a key player in the kingdom’s debt and equity markets, sees great potential in alternative financing models. The bank has helped manage 41 equity and debt transactions this year, worth more than $77.8 billion. This growing activity reflects the rising demand for innovative financial products within the Saudi financing strategy.
Project bonds, a new concept for the region, could help raise long-term capital for specific projects. These bonds allow investors to earn returns directly from project-generated cash flows. Once major projects like NEOM and other megaprojects begin generating revenue, such structures may become more practical. Financial leaders say this shift could also free up banks to lend more to new developments.
Saudi Arabia’s Vision 2030 continues to progress at full speed. Authorities have confirmed that 85 percent of the $2 trillion transformation plan is already complete. The kingdom expects to undertake nearly 18,000 projects across various sectors, including infrastructure, transportation, energy, and aviation. These initiatives require flexible and efficient financing tools to ensure consistent progress.
Analysts predict Saudi Arabia will borrow about $55 billion in 2025 and $57 billion in 2026. Budget deficits are expected to continue through 2027, especially if oil prices stay below 2024 levels. That forecast makes alternative market-based funding more important than ever for the Saudi financing strategy.
HSBC has also advised on the country’s first-ever residential mortgage-backed securities deal. The transaction, involving the Saudi Real Estate Refinance Company, highlights the nation’s growing regulatory maturity. By attracting both local and global investors, these efforts are expanding market depth and liquidity.
Beyond Saudi Arabia, HSBC is working with regulators across the MENA region to strengthen legal frameworks for capital market growth. The bank continues to educate clients about alternative funding models and how they align with global investment trends.
Overall, through technology investments, sector expertise, and regional partnerships, Saudi Arabia’s vision for financial innovation keeps expanding. With strong investor interest and regulatory support, the Saudi financing strategy appears set to lead the next phase of the kingdom’s economic transformation.
