Saudi Arabia: Turning to Debt Is a Strategic Choice to Finance Economic Growth Projects, Not Consumption
The Saudi Finance Minister stated in a television interview with Bloomberg Al-Sharq that the Kingdom views borrowing as a carefully considered strategic tool, not as a solution for covering consumer needs.
He explained that funds obtained through loans are primarily directed toward financing essential capital and development projects, as well as infrastructure initiatives, with the aim of supporting future economic growth rates and enhancing competitiveness.
The minister noted that the Kingdom’s borrowing decisions, like those of some other countries, are based on forward-looking expenditures intended to foster a business-friendly environment, attract investment, create promising job opportunities, and support sustainable development projects.
He emphasized that the use of debt is positive and strategic as long as it remains within this productive investment framework. He also warned that some countries deviate from this approach by excessively borrowing to finance consumption or unproductive activities that fail to attract investment, creating significant challenges. Saudi Arabia exercises caution to avoid this approach.
Source: Bloomberg Al-Sharq
