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Gulf Countries' Debt Soars Amid Infrastructure Push

2/11/2025

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Summary

Story summary

Gulf countries are experiencing increasing debts linked to low interest rates and infrastructure projects.
Saudi Arabia's debt market is projected to exceed $500 billion in 2023, marking a 16% rise from 2024.
The UAE's debt market expanded by 10% last year, likely reaching over $400 billion soon.
Governments and state-owned entities hold most of the debt, with banks actively participating in issuance.
Declining oil prices may lead to additional borrowing, although defaults are rare.

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Story summary

Gulf countries are experiencing increasing debts linked to low interest rates and infrastructure projects.
Saudi Arabia's debt market is projected to exceed $500 billion in 2023, marking a 16% rise from 2024.
The UAE's debt market expanded by 10% last year, likely reaching over $400 billion soon.
Governments and state-owned entities hold most of the debt, with banks actively participating in issuance.
Declining oil prices may lead to additional borrowing, although defaults are rare.