Saudi Arabia’s Mega Bond Sale Sets Clock Ticking on Change

28 Sep 2017   Saudi Arabia

Saudi Arabia has set out an extraordinarily ambitious plan to transform its economy and reduce its huge reliance on oil. Saudi Arabia has been forced by the collapse of oil prices onto a road of change: the lifting of the kingdom’s ban on women driving is another clear signal of that. But the country’s jumbo $12.5 billion bond sale, after last year’s even bigger $17.5 billion debut issue , is as much about where Saudi Arabia has come from as where it hopes to go. The kingdom has set out an extraordinarily ambitious plan to transform its economy and reduce its huge reliance on oil, including aiming for a balanced budget by 2020. But doubts abound about its ability to achieve its aims: they were part of the reason Fitch downgraded Saudi Arabia in March to single-A-plus. For now, the oil price remains pivotal. Take the big swing in […]

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