Saudi Arabia’s publicly listed corporates are expected to spend $85 billion–$95 billion on capital expenditure annually from 2025 to 2027, according to S&P Global.
That will result in stronger demand for bank lending and capital markets activity, the ratings agency said. The projection compares with roughly $85 billion in 2024.
“Close to 90% of the projected aggregate capex relates to companies that are, directly or indirectly, owned by state-owned entities (SOEs), including the Public Investment Fund (PIF) and the General Organization for Social Insurance,” the report said. Analysts including Rawan Oueidat highlighted that the spending surge is largely tied to expansions aligned with Vision 2030 targets.
S&P Global said the investment wave will be partially financed through internal cash flows, but borrowing requirements will remain significant. Larger corporates are increasingly tapping debt markets and reaching out to global investors to diversify funding sources and extend maturities.
The broader economic environment remains supportive. S&P expects Saudi GDP to grow about 3.5% on average over 2025-2028, driven by rising oil production and strong non-oil sector performance supported by consumption and government initiatives. Corporate EBITDA margins are projected to stay resilient through 2027 despite softer oil prices, moderate domestic inflation, and rising competition in consumer sectors.
Read the full report here.
