According to the Saudi finance minister, global growth in 2025 is most at risk from sovereign debt.

• In Riyadh, Mohammed Al-Jadaan of CNBC stated that the pressing issue that requires attention globally is sovereign debt.
• In 2023, the global public debt reached a record $97 trillion, prompting the United Nations to urge governments and financial systems worldwide to implement immediate reforms.

Saudi Arabia's finance minister stated that national debt poses a significant risk to markets in the near future, particularly for lower income countries and rapidly fragmenting global markets.

Sovereign debt issues, particularly in low-income countries and emerging economies, are a serious concern that we need to closely monitor, according to Mohammed Al-Jadaan, who spoke to CNBC's Dan Murphy Wednesday at the Future Investment Initiative in Riyadh.

"We hope to find a solution through the collaboration of the IMF and G20, and be prepared to support the world economy in case of shocks in that area. However, as global leaders, we must closely monitor this area to prevent any unexpected events."

Earlier in the conversation, Al-Jadaan emphasized the significance of achieving a soft landing for economies while central banks work to control inflation.

"We arrived in Washington two days ago, following a week of meetings at the IMF, World Bank, and G20, and I believe there is a growing recognition that the world is proving to be resilient. There was a lot of discussion about steering a soft landing, which is crucial. The main challenge is managing sovereign debt, and there was extensive debate last week on how the three institutions could collaborate to find a solution, particularly in low-income countries."

In 2023, the global public debt reached a record $97 trillion, prompting the United Nations to urge governments and financial systems worldwide to implement immediate reforms.

The UN's June report stated that Africa's faltering economies have resulted in a heavier debt burden, with the number of African countries with debt-to-GDP ratios over 60% increasing from 6 to 27 between 2013 and 2023.

The cost of repaying debt has increased, particularly affecting emerging markets and developing countries.

Al-Jadaan stated on Wednesday that many low-income countries have a debt service that is more expensive than their combined spending on healthcare, education, and climate action.

"We must ensure that this is not detrimental to the world, and we must work together globally to find a solution."