Saudi Arabia has expected to see healthier oil prices this year due to mounting global demand.
According to Reuters, Saudi Minister of Finance Mohammed al-Jadaan said Tuesday he expected healthier oil prices in 2020 due to solid demand, reduced output and easing trade tensions.
Saudi Arabia will pump the proceeds from last month’s listing of oil giant Saudi Aramco into the local economy over several years, including building up the domestic defense industry, the minister said on the sidelines of the World Economic Forum in Davos.
“We work with our military industry to develop our own military assets in the mid-term to deal with these risks, including investment by PIF,” he added.
“Our focus is firmly on non-oil GDP growth, with focus on tourism, entertainment, sports, technology and financial sector,” Jadaan said.
Bloomberg revealed that the Kingdom issued a seven-year tranche at 110 basis points over US Treasuries, a 12-year offering at a spread of 135 basis points and a 35-year tranche at a spread of 180 basis points.
Saudi Arabia is seeking to issue bonds worth SAR120 billion (USD32 billion) during this year, benefiting from the drop in interest rate and tension in the region.
In Oct., the Kingdom approved the establishment of the National Center for Debt Management. The Riyadh-based center will enjoy financial and administrative independence, and it will be associated organizationally to the minister.
The center will follow up the Kingdom’s credit rating, in cooperation with the relevant government agencies. It will contribute to the formulation and development of the Kingdom’s public debt policy and secure the Kingdom’s financing needs in the short, medium and long term.