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JPM estimates that Saudi Arabia will issue bonds worth $12.6 billion by the end of the year.

JPMorgan reported on Tuesday that Saudi Arabia will issue bonds worth $12.6 billion for the rest of the year. The kingdom is resorting to debt markets as it makes huge investments in order to revamp its economy and reduce oil prices.

The Gulf nation, which is forecasting a budget gap of $26,93 billion for this year, seeks funds to invest into new industries, and wean itself off oil, under its Vision 2030 Plan, by investing in tourism, manufacturing, and technology.

Reports in April indicated that Saudi Arabia faces increasing pressure to increase debt or reduce spending following a drop in crude oil prices.

The Kingdom enjoys a low ratio of debt to GDP and the confidence of lenders. It was also among the largest emerging markets debt issuers by 2024.

JPMorgan Chase said that it has issued $14.4 billion in bonds so far this fiscal year. It is the largest issuer of emerging market debt in the first five month of 2025. This was despite the market volatility caused by President Donald Trump’s trade policies.

JPM stated that "an uncertain macro-economic environment around the world and higher borrowing costs were deterrents to new issue activity in emerging markets over the last three months".

The bank stated that, "supply could increase in June, if market conditions remain stable," but warned that volatility was still a major risk.

Saudi Arabian companies, such as the state oil giant Aramco, and sovereign wealth fund PIF have also tapped into the debt market.

Saudi Aramco raised $5 billion last week through bonds. It also published a prospectus for Islamic Bonds, which could indicate a future issuance.

JPM reported on Tuesday that Kuwait was one of the other emerging market countries with the "largest issuance expectations" from now until the end of this year. Kuwait is forecasting an $8 billion debt issuance before year's end.

This small Gulf state is also the fourth largest oil producer in the Middle East. It issued this law earlier this year to regulate public borrowing, as it prepares to return to the international debt markets, after an eight-year absence. (Reporting by Federico Maccioni, editing by Yousef Saba, William Maclean)

(source: Reuters)