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Saudi Arabia Seeks Developing Judicial Sector with AI

Three foreign law firms were granted licenses to operate in the Kingdom at the International Conference on Justice in Riyadh on Sunday (Asharq Al-Awsat)
Three foreign law firms were granted licenses to operate in the Kingdom at the International Conference on Justice in Riyadh on Sunday (Asharq Al-Awsat)
    Riyadh – Bandar Al-Mosalam, Mohammed Halal
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Saudi Arabia Seeks Developing Judicial Sector with AI

Three foreign law firms were granted licenses to operate in the Kingdom at the International Conference on Justice in Riyadh on Sunday (Asharq Al-Awsat)
Three foreign law firms were granted licenses to operate in the Kingdom at the International Conference on Justice in Riyadh on Sunday (Asharq Al-Awsat)

In a first, the Saudi government granted three foreign law firms licenses to operate in the Kingdom as it seeks developing the justice sector and anticipates the future of technologies and artificial intelligence in the courts.

This followed Saudi Arabia bringing together several ministers, officials, experts, jurists, and international specialists at the International Conference on Justice in Riyadh on Sunday.

Participants at the conference discussed the importance of digital transformation in accordance with the highest legal guarantees.

Speaking about Saudi Arabia’s digital legal experience, Saudi Justice Minister Walid Al-Samaani revealed that the Kingdom had held more than six million documented video sessions and issued more than two million verdicts from various courts.

Al-Samaani reaffirmed that transparency was ensured in the process.

The minister said that Saudi Arabia had worked under the vision led by Crown Prince Mohammad bin Salman bin Abdulaziz to develop all sectors--including the justice sector-- by supporting digital innovations and launching development projects that enhance the values of justice and transparency, improve user experience and speed up judicial processes.

Al-Samaani stated that the conference aims to enrich knowledge about the future of technologies in accordance with the highest legal guarantees. It also seeks to build justice partnerships, exchange experiences, and develop justice capabilities around the world.

He added that the Kingdom’s legal sector seeks “to raise efficiency of judicial procedures” while working with international experts.

Al-Samaani added that the sector has great opportunities for developing supportive technologies that enhance judicial guarantees.

“The change in digital transformation is a reality. What is an option now, after five years, will not be an option,” stressed the minister.

However, Al-Samaani explained, technology cannot replace humans or human thinking regardless of its advancement.

Themed “Enhancing Access to Justice through the Use of Digital Technologies,” the two-day conference aims to develop the justice sector, experiences, and the exchange of knowledge to facilitate access to justice.

The conference is presenting valuable insights on the best ways to benefit from technology to improve the performance of courts and justice sectors around the world. It also is discussing challenges and finding solutions that improve the quality of services.

Al-Samaani affirmed that digital transformation will become a reality in all sectors. Stressing that the transformation is an opportunity rather than a challenge, the minister said that it will facilitate access to justice and contribute to achieving better results.

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Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
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Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).

Saudi Arabia has raised $12 billion from global debt markets in its first international bond issuance of the year, attracting bids worth nearly $37 billion. This demonstrates strong investor appetite for Saudi debt instruments.

The issuance comes just two days after the approval of the 2025 annual borrowing plan by Minister of Finance Mohammed Al-Jadaan. The plan estimates financing needs for the fiscal year at SAR 139 billion ($37 billion). The funds will be used to cover the projected SAR 101 billion ($26.8 billion) budget deficit for 2025, as well as repay SAR 38 billion ($10 billion) in principal debt obligations due this year.

The National Debt Management Center (NDMC) announced on Tuesday that the issuance includes three tranches: $5 billion in three-year bonds, $3 billion in six-year bonds, and $4 billion in ten-year bonds. Total demand for the bonds reached $37 billion, exceeding the issuance size by three times and reflecting robust investor interest.

The NDMC emphasized that this issuance aligns with its strategy to broaden the investor base and efficiently meet Saudi Arabia’s financing needs in global debt markets.

According to IFR, a fixed-income news service, the initial price guidance for the three-year bonds was set at 120 basis points above US Treasury yields. The six-year and ten-year bonds were priced at 130 and 140 basis points above the same benchmark, respectively.

Strong demand allowed Saudi Arabia to lower yields on the shorter-term bonds, further demonstrating investor confidence. Economists noted that the pricing above US Treasuries is attractive in the current market, showcasing trust in Saudi Arabia’s economic stability and financial strategies.

International confidence

Economic experts view this successful bond issuance as a testament to international confidence in Saudi Arabia’s robust economy and financial reforms. Dr. Mohammed Al-Qahtani, an economics professor at King Faisal University, said the move underscores Saudi Arabia’s commitment to diversifying financing tools both domestically and internationally. He added that the funds would support Vision 2030 projects, reduce pressure on domestic resources, and attract strong international investor interest.

The issuance strengthens Saudi Arabia’s ability to meet financial needs, expand its investor base, and establish a global financing network, he said, noting that it also facilitates entry into new markets, enabling the Kingdom to accelerate infrastructure projects and capital expenditures.

Dr. Ihsan Buhulaiga, founder of Joatha Business Development Consultants, described the 2025 budget as expansionary, aimed at meeting the financing needs of economic diversification programs. He stressed that the budget deficit is an “optional” one, reflecting a deliberate choice to prioritize Vision 2030 initiatives over immediate fiscal balance.

Buhulaiga explained that the Kingdom’s approach balances two options: limiting spending to available revenues, which would avoid deficits but delay Vision 2030 initiatives, or borrowing strategically to fund Vision 2030 goals. He said that the annual budget is just a component of the larger vision, which requires sustained funding until 2030.

He continued that Saudi Arabia’s fiscal space and creditworthiness allow it to borrow internationally at competitive rates, explaining that this flexibility ensures financial sustainability without compromising stability, even during challenges like the COVID-19 pandemic.

Saudi Arabia’s debt portfolio remains balanced, with two-thirds of its debt domestic and one-third external. As of Q3 2024, public debt stood at approximately SAR 1.2 trillion, below the 30% GDP ceiling. According to the Ministry of Finance, the budget deficit is expected to persist through 2027 but remain below 3% of GDP.

Buhulaiga highlighted the importance of capital expenditure, which reached SAR 186 billion in 2023 and is projected to rise to SAR 198 billion in 2024, a 6.5% increase.

He emphasized the government’s pivotal role in economic diversification, supported by investments from the Public Investment Fund (PIF), the National Development Fund, and its subsidiaries, including the Infrastructure Fund.

The PIF recently announced a $7 billion Murabaha credit facility, facilitated by Citigroup, Goldman Sachs International, and JPMorgan. Meanwhile, the NDMC arranged a $2.5 billion revolving credit facility earlier in January, compliant with Islamic principles, to address budgetary needs.

In November, Moody’s upgraded Saudi Arabia’s credit rating to Aa3, aligning with Fitch’s A+ rating, both with a stable outlook. S&P Global assigns the Kingdom an AA-1 rating with a positive outlook, reflecting a high ability to meet financial obligations with low credit risk.

The IMF estimates Saudi Arabia’s public debt-to-GDP ratio at 26.2% in 2024, describing it as low and sustainable. This is projected to rise to 35% by 2029 as foreign borrowing continues to play a key role in financing deficits.