Saudi Arabia Looks To Foreign Banks, Not Oil, For Financial Help | Celebrity Net Worth 2026

Biography & Early Wealth Journey

MARWAN NAAMANI/AFP/Getty Images

If the Financial Times is correct, this would be the kingdom's first international bond offering and the second time the country has borrowed money this year. In April, Saudi Arabia borrowed $10 billion. The five-year loan will significantly increase the country's debt level from 7% of GDP in 2015, to 50% of GDP by 2020.

The collapse in oil prices since 2014 has clearly put the OPEC leader in financial trouble. In February, the country's foreign exchange holdings dropped by more than $9 billion and its reserves had fallen by approximately $20 billion in January. In response, Standard & Poor's downgraded Saudi Arabia's credit rating twice. The kingdom's current rating is just four levels above non-investment grade territory.

Primary Income Streams & Multi-Million Contracts

A 2015 report from the International Monetary Fund projected Saudi Arabia could be out of money in five years if oil stays at or below $50 a barrel. The OPEC basket is currently hovering at $44.

But a potential sovereign debt issue, the $10 billion loan, and Saudi Arabia's planned restructuring of its economy, to make it less dependent on oil, may prove the IMF wrong. Of course, the OPEC basket could surge again, too, which could help the kingdom dig its way out of its financial hole. It seems unlikely, however, that oil will regain its "black gold" stature any time soon.