Iran War Economic Impact: Saudi Arabia Begins Talks for $8 Billion Loan
RIYADH: Saudi Arabia has begun preliminary discussions to secure up to $8 billion in new loans as it seeks to manage growing financial pressure caused by the economic impact of the Iran war, according to a Bloomberg report.
The report said the conflict has increased economic and financial pressures on Saudi Arabia, prompting the kingdom to accelerate efforts to strengthen its financial resources.
According to people familiar with the matter, Saudi Arabia’s National Debt Management Center (NDMC) has approached banks regarding a potential loan agreement. The sources spoke on condition of anonymity because they were discussing private information.
State-owned oil giant Saudi Aramco is also reportedly holding similar discussions with banks regarding potential financing.
Both financing arrangements remain at an early stage and may ultimately not result in agreements, the sources said.
Representatives of the National Debt Management Center, which operates under Saudi Arabia’s Ministry of Finance, were not immediately available for comment, while Aramco declined to comment on the matter.
The borrowing efforts come as Saudi Arabia and other Gulf states seek to cope with the economic consequences of the regional conflict.
The war has disrupted trade through the Strait of Hormuz, increased import costs and placed additional pressure on supply chains, adding to the financial challenges facing the region.
