Saudi Arabia has asked international banks to submit proposals for a five-year syndicated loan (jointly arranged bank financing) of $6-8 billion as the kingdom seeks to strengthen its finances amid the costly regional war with Iran, which began in late February 2026. The facility is part of a broader 2026 borrowing plan targeting approximately SAR 217 billion, or about $58 billion, to cover a projected budget deficit of roughly $44 billion and around $13.87 billion in existing debt repayments. The plan was adopted in January 2026, before hostilities began, but military spending, regional supply-chain disruptions and a wider deficit have altered Saudi Arabia’s fiscal outlook. During the first half of the year, the kingdom issued about $49.34 billion in bonds and sukuk (Islamic financial certificates), including a domestic sukuk issuance worth SR 9.518 billion in August. Public debt reached approximately SAR 1.685 trillion by the end of the second quarter, equivalent to about 34% of gross domestic product. S&P and Moody’s have maintained Saudi Arabia’s A+ and Aa3 ratings, respectively, both with stable outlooks. The proposed loan represents roughly 10-14% of the annual financing target. Its importance lies in expanding Saudi Arabia’s funding sources beyond recurring bond and sukuk issuance, while the facility’s expandable structure would allow it to grow beyond $8 billion based on need.