Abu Dhabi Seeks Partners to Carry Out Infrastructure Projects Worth $54 Billion

General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
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Abu Dhabi Seeks Partners to Carry Out Infrastructure Projects Worth $54 Billion

General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo

Abu Dhabi is seeking partners to carry out infrastructure projects worth $54 billion over the next five years, and aims to double that amount by 2040, the head of Abu Dhabi Projects and Infrastructure Centre (ADPIC) said on a tour of Istanbul.

Officials from ADPIC, which manages government capital projects, met with Turkish contractors, developers and construction companies during the visit to Türkiye, which came after separate trips to Singapore and China.

The group will decide on a short list of companies from Türkiye, Singapore and China for the planned domestic projects, ADPIC director Maysarah Mahmoud Salim Eid told reporters on Wednesday, in remarks for release on Thursday, Reuters reported.

ADPIC, which also oversees project implementation and delivery for the emirate, shares "a common vision (in) infrastructure development" with Türkiye, Eid said.

"We are still in the discussion phase (and) there are some short-listed companies," he said, adding announcements will be made after mutual agreements are set.

China and Türkiye are first and second respectively in a global ranking this year of top contractors, according to ENR's "Top 250 International Contractors" list.

Eid said that as part of the group's "mega portfolio" of projects are bridges and tunnels that are linked to the UAE's broader economic growth and diversification plan.

Much of the planned investments are in "social infrastructure" including national housing, accounting for about 50% of the portfolio, as well as schools and community facilities, he said.

"Our budget, until 2030, is $54 billion. This is for the coming five years. And we are expecting this number to double across the next years until 2040," Eid said.

The projects, including public–private partnerships, will be in Abu Dhabi, Al-Ain city and the Al-Dhafra region, he said.

Financing can be funded through the Abu Dhabi government directly and executed through foreign consultants and contractors, based on outcomes of the roadshow, Eid said.

It can also be funded through partnerships, investment with either real estate developers or investors who are ready to invest in infrastructure and enter a long-term partnership, he added.



Standard Chartered: Fiscal Deficit a Catalyst of Transformation in Saudi Arabia

A general view of Riyadh. (SPA)
A general view of Riyadh. (SPA)
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Standard Chartered: Fiscal Deficit a Catalyst of Transformation in Saudi Arabia

A general view of Riyadh. (SPA)
A general view of Riyadh. (SPA)

Standard Chartered Global Research said on Tuesday it believes the recent fiscal deficits in Saudi Arabia have not been a setback, but rather a catalyst of structural macroeconomic transformation.

In its latest Global Focus report, SC Global Research expects Saudi policy makers to continue their efforts in diversifying funding sources in 2026, seeking to attract greater foreign direct investment alongside stronger foreign investor participation in domestic debt markets.

The report said increased capital flows are likely to support the Kingdom’s capital market momentum, notably thanks to greater inclusion in leading investment indices.

SC Global Research expects Saudi Arabia to continue delivering robust GDP growth of 4.5% in 2026, outperforming the 3.4% growth rate for the global economy.

It attributed the Kingdom’s economic resilience to sustained momentum in the oil sector.

“The hydrocarbon industry has returned to growth, as OPEC+ eased the production cuts that had been in place since 2023,” it noted.

Meanwhile, the non-oil sector is also expected to grow steadily at 4.5%, driven by investment and consumption, and will continue supporting the economy.

Saudi Arabia is forecasting real GDP growth of 4.6% in 2026, supported by an expected increase in the output of non-oil activities, led by tourism, entertainment, logistics, and technology.

Mazen Bunyan, CEO of Standard Chartered Saudi Arabia, said: “Continued non-oil sector growth will ensure sustained financial stability whilst diversifying growth sources across the Kingdom.”

In its report, SC Global Research forecasts the Kingdom’s public debt-to-GDP to increase to 36% by end-2026, from 26% at end-2024, taking it closer to the Kingdom’s self-imposed 40% ceiling.

Even so, it believes that recent fiscal deficits have not been a setback, but rather a catalyst of structural macroeconomic transformation.


Saudi Arabia Raises $11.5 Bln to Open 2026 Amid Strong Investor Demand

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia Raises $11.5 Bln to Open 2026 Amid Strong Investor Demand

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia has successfully completed its first foray into international debt markets for 2026, issuing $11.5 billion in US dollar-denominated sovereign bonds. This move not only met financing needs but also became a global financial vote of confidence in the strength of the Kingdom’s economy.

The issuance attracted orders exceeding $31 billion, underscoring Saudi Arabia’s appeal as a safe and highly attractive destination for global institutional investors, as well as its ability to secure competitive pricing despite volatility in global monetary markets.

The bonds were covered 2.7 times, highlighting strong confidence in the trajectory of Vision 2030. Proceeds were distributed across four maturities ranging from three to 30 years, reflecting the Kingdom’s ability to build a stable, long-term yield curve.

The National Debt Management Center said the strong international demand reflects investors’ positive outlook on Saudi Arabia’s fiscal strength and non-oil growth prospects.

The issuance forms part of an annual borrowing plan targeting approximately $57.8 billion to finance the budget deficit and repay maturing debt, while maintaining debt at safe levels not exceeding 33 percent of the gross domestic product.

Saudi Arabia follows a conservative approach by fixing interest rates on 87 percent of its debt, shielding the budget from fluctuations in global borrowing costs and supporting the sustainability of capital spending on major projects, independent of swings in energy revenues.

The bonds were issued in four tranches. The first was $2.5 billion of three-year notes maturing in 2029. The second was $2.75 billion of five-year notes maturing in 2031. The third was $2.75 billion of 10-year notes maturing in 2036. The fourth was $3.5 billion of 30-year bonds maturing in 2056.

Reuters reported that initial price guidance for the three-year tranche was set at about 95 basis points over US Treasuries, while the five-year tranche was guided at around 100 basis points.

International Financing Review said initial guidance for the longer-dated tranches was about 110 basis points over Treasuries for the 10-year bonds and around 140 basis points for the 30-year bonds.

Annual borrowing plan

The National Debt Management Center said the issuance was carried out under the recently announced annual borrowing plan, which aims to diversify the investor base and meet the Kingdom’s financing needs from global debt markets efficiently and effectively.

It said the scale of international investor demand reflects confidence in the resilience of the Saudi economy and its future investment opportunities.

Saudi Finance Minister Mohammed Al-Jadaan approved the 2026 borrowing plan last week at around $57.8 billion, to cover a budget deficit of nearly $44 billion and repay about $13.9 billion in maturing debt during the year.

The issuance follows an active year for Saudi Arabia in bond markets, as it ranked among the world’s largest issuers in 2025 amid a surge in Middle East and North Africa issuance driven by rising financing needs and strong demand, including from Asian investors.

Under its 2026 financing strategy, Saudi Arabia relies on three main channels, led by private markets, alongside the domestic debt market and international markets.

The National Debt Management Center aims for riyal denominated sukuk to account for 25 to 35 percent of total funding, with international markets contributing 20 to 30 percent, with a particular focus on US dollar issuances. Private markets, including syndicated loans and export credit agency facilities, could account for up to 50 percent of total financing.

Strong financial management

Mohammed Farraj, chief asset management officer at Arbah Capital, said the successful coverage of Saudi Arabia’s first international issuance for 2026 reflects a high level of sovereign financial management and an advanced ability to deploy debt instruments to achieve national objectives.

He said the 2.7 times coverage ratio confirms deep international investor confidence in Saudi Arabia’s fiscal position and shows the Kingdom’s ability to price its credit risk at competitive levels close to those of advanced economies.

Farraj said the narrowing of spreads versus global benchmark bonds signals a lower risk premium, helping to reduce the overall cost of capital directed toward development and strengthening the position of Saudi sovereign assets as a stable and attractive investment within global portfolios.

He added that the move aligns with a proactive borrowing strategy aimed at neutralizing risks from monetary market volatility by locking in financing costs and securing liquidity for major projects ahead of any potential market pressures.

He said the strategy boosts budget flexibility and supports the sustainability of capital spending for Vision 2030 projects, away from economic cycle volatility or fluctuations in energy revenues, noting that public debt in this context is being redefined as a strategic tool to maximize returns from non oil growth and expand the productive base, rather than merely a means of covering deficits.

On funding diversification, Farraj explained that distributing issuance between conventional debt and Islamic sukuk across varied maturities improves the balance sheet structure, reduces refinancing risks and broadens the investor base geographically, limiting concentration risks in any single market.

Building a clear benchmark yield curve also supports the private sector’s ability to price its financing and sends positive signals to credit rating agencies about Saudi Arabia’s fiscal discipline, he added.

In international comparison, Farraj said Saudi Arabia’s public debt to GDP ratio remains among the lowest globally and within a range that ensures fiscal sustainability, compared with elevated levels in major advanced economies.

This gap shows Saudi borrowing is directed toward investment and growth, giving public finances flexibility to manage resources even if energy markets come under pressure, and reinforcing the Kingdom’s position as one of the world’s most stable and resilient economies in the face of global shocks, he stressed.


Saudi Central Bank to Asharq Al-Awsat: Payment Digitization Anchors Kingdom's Global Financial Hub Status

Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
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Saudi Central Bank to Asharq Al-Awsat: Payment Digitization Anchors Kingdom's Global Financial Hub Status

Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)

The Saudi Central Bank is spearheading a comprehensive regulatory and technical initiative to transform the Kingdom’s digital payments landscape, shifting from traditional banking to establishing a global financial hub, opening the sector to regulated foreign investment, and licensing more international electronic payment applications.

The effort forms part of a broader initiative to enhance the competitiveness of the national economy and solidify Saudi Arabia’s position as a regional and global financial hub.

The push includes updating regulatory frameworks, enabling payments companies, e-wallet providers, and foreign-owned exchange houses, as well as expanding the acceptance of international wallets and applications at points of sale and across e-commerce platforms.

The measures are intended to broaden payment options for individuals, visitors, and investors, raise efficiency in the financial sector, and enhance the appeal of the Saudi market to global capital.

Within this framework, Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank, told Asharq Al-Awsat that the central bank’s new strategy aims to create a society that is less dependent on cash while ensuring the highest levels of cybersecurity and consumer protection.

Aldeheem said the central bank continuously analyzes global developments in payments and adapts them to local market needs. Through ongoing cooperation with peer central banks and international organizations, it monitors and evaluates innovations, exploring modern technologies to keep pace with the rapid changes in this vital and sensitive sector, while safeguarding financial stability.

He stated that the central bank is committed to adopting and integrating the latest technologies to deliver advanced and secure financial services that meet user expectations, thereby reinforcing Saudi Arabia’s standing as a leading financial center in the region.

This work aligns with the bank’s strategy to enhance the payments ecosystem by providing secure and reliable core payment services that ensure interoperability and ease of access.

Broad regulatory powers over payments

Aldeheem stated that the Saudi Central Bank is the authority responsible for supervising and overseeing the payments sector, exercising all powers necessary to ensure financial stability, encourage innovation, and protect customers, in accordance with the Payments and Payment Services Law and its executive regulations.

These powers include issuing rules, regulations, and instructions governing payment systems and services, licensing and renewing payment system operators, setting capital, governance, and risk management requirements, classifying systemically important payment systems, overseeing payments infrastructure to ensure efficiency and continuity, obliging providers to safeguard and segregate customer funds and data, and conducting inspections and supervision.

Consumer protection at the core

On consumer protection, Aldeheem said that the central bank prioritizes protecting customers in the financial sector in line with international best practices. Regulatory frameworks require payment service providers to comply with provisions related to framework agreements, including the nature of the service, execution timelines, fees, currencies, and complaint handling.

Rules also cover the safeguarding of protected funds, including holding them in separate accounts at licensed banks. Providers are required to offer effective channels for receiving and resolving complaints fairly and transparently, comply with cybersecurity requirements, and adhere to final settlement rules and default management frameworks to protect customer rights.

The central bank licenses two types of payment activities, electronic wallets and payment services. Aldeheem said 28 companies are currently licensed, including 13 e-wallet providers and 15 payment service companies.

Future of ATMs

Despite the rapid growth of electronic payments, Aldeheem said the central bank closely monitors developments related to automated teller machines.

It has established a regulatory and supervisory framework for ATM networks and set clear rules for banks to ensure effective monitoring, thereby encouraging geographic coverage in line with financial inclusion targets, he told Asharq Al-Awsat.

Foreign ownership

Foreign investors can enter the exchange sector by either opening a branch of a foreign company or establishing a local firm. Aldeheem said foreign investors are permitted to own exchange companies in Saudi Arabia with full ownership.

Licenses enable exchange firms to buy and sell foreign currencies, as well as handle imports and exports. He noted that a Saudi company with foreign capital, Global Exchange AS Currency Services Ltd, was licensed in September as part of the sector's regulated opening to foreign investment.

Regulation of buy now, pay later services

Regarding buy-now, pay-later services, Aldeheem stated that the activity is classified as a financing service licensed by the Saudi Central Bank. It provides financing for goods and services without deferred payment costs and, in some cases, covers education or medical expenses, extending beyond traditional consumer finance.

The central bank issued rules governing BNPL companies to protect users, particularly individuals, ensure financing aligns with borrowers’ credit profiles, and safeguard the stability of the sector. The rules were reviewed and updated in November 2024.

Seven companies have been licensed to operate BNPL services, while six others are completing licensing requirements. New financing during the first nine months of 2025 reached about 28 billion riyals ($7.5 billion).

Users aged 25 to 45 accounted for around 67 percent of total financing. Wholesale and retail trade accounted for approximately 70 percent, followed by health services at 9 percent.

Growth in Mada point-of-sale transactions

Aldeheem said transactions processed through the national payments system, Mada, for point-of-sale devices rose 16 percent in 2024 from the previous year, reaching 10.4 billion transactions worth more than 668 billion riyals ($178.1 billion).

The growth coincided with a sharp expansion in POS devices, which exceeded 2.3 million units by the end of October 2025, the highest level on record, reflecting the depth of the shift toward electronic payments in the Saudi market.

Cash and electronic payments

While electronic transactions now account for 79 percent of operations, Aldeheem said the central bank does not aim to eliminate cash entirely. Its objective is to build a society that is less reliant on cash, while maintaining the national currency's acceptance as legal tender.

He stressed that ensuring the availability of all payment options, including cash, supports financial inclusion and serves residents and visitors alike.

Global payment applications

Regarding services such as Apple Pay, Samsung Pay, and Google Pay, Aldeheem explained that the central bank supports new entrants that meet regulatory requirements. Several new electronic payment applications are expected to launch in the near term, supported by interoperable infrastructure that allows seamless use at POS terminals and e-commerce platforms.

Saudi Arabia was among the first countries globally to adopt NFC-based mobile payments, he revealed, adding that the central bank continues to improve user experience while maintaining high security standards.

To facilitate payments for tourists and visitors, the central bank has invested in payments infrastructure for decades, linking global networks including Visa, Mastercard, American Express, UnionPay, Discover, and JCB through the Mada system.

Aldeheem said acceptance of international networks is being expanded in line with growth in tourist numbers. He cited a recent agreement between the Saudi Central Bank and Ant International, which will enable the acceptance of Alipay+ payments via Mada in 2026.

The bank has also worked to reduce the cost of accepting international card payments by reviewing fee structures with payment service providers, banks, and global card networks, supporting competitiveness in sectors such as hospitality and retail.

Unified digital services platform

Aldeheem said the central bank is enhancing its digital channels in line with national digital transformation goals. A unified electronic services portal has been launched, providing over 25 services to individuals, businesses, and government entities.

These include digital government banking services, regulatory sandbox applications, approvals for senior management appointments, ATM licensing, and consumer complaints services.

Digital check clearing and cybersecurity

Among the digital transformation initiatives is electronic check clearing, which processes check data electronically through a central clearing house, enabling settlement within one business day.

On cybersecurity, Aldeheem said requirements are embedded across all digital initiatives, with continuous testing to ensure readiness against evolving threats. National expertise within the central bank plays a key role in monitoring systems and strengthening defenses.

Currency in circulation and counterfeit protection

Addressing the rise in currency in circulation to nearly 250 billion riyals ($66 billion), Aldeheem cited economic growth, higher consumption, increased tourism, and year-round Umrah as key factors contributing to this increase. Cash in circulation accounts for approximately 6 percent of GDP and reflects confidence in the local economy.

Regarding counterfeiting, he stated that the sixth currency issue, printed under Custodian of the Holy Mosques King Salman bin Abdulaziz Al Saud, incorporates advanced security features.

The central bank has conducted awareness campaigns and training sessions for banks, customs officials, security agencies, and private sector workers to maintain trust in the national currency as a reliable means of payment and savings.