Saudi Arabia Completes $32 Billion Sukuk Restructuring to Strengthen Fiscal Strategy and Domestic Debt Market

Saudi Arabia has successfully concluded a sukuk restructuring and new issuance valued at over SAR 120 billion ($32 billion), as part of ongoing efforts to bolster fiscal sustainability, manage debt obligations more effectively, and enhance the local debt market.

According to the National Debt Management Center (NDMC), the Kingdom carried out its sixth early repurchase operation in the domestic market. This included the early redemption of government sukuk maturing between 2025 and 2029, with a total value of approximately SAR 60.4 billion. To refinance these commitments, the NDMC issued new sukuk totaling SAR 60.3 billion, structured across five tranches with maturities ranging from 2032 to 2040.

“This initiative is a continuation of NDMC’s efforts to strengthen the domestic market,” the Center said in a statement. “It allows the NDMC to manage government debt obligations more efficiently and aligns with broader efforts to enhance the public fiscal framework in the medium and long term.”

The issuance reflects Saudi Arabia’s wider economic objectives under Vision 2030, which seeks to reduce dependence on oil revenues, build fiscal resilience, and develop robust capital markets amid ongoing regional and global uncertainties.

The five new sukuk tranches were distributed as follows:

• SAR 21.5 billion maturing in 2032

• SAR 1.8 billion maturing in 2035

• SAR 14.2 billion maturing in 2036

• SAR 5.9 billion maturing in 2039

• SAR 16.9 billion maturing in 2040

To facilitate the restructuring, the Ministry of Finance and NDMC appointed several prominent financial institutions—including HSBC Saudi Arabia, SNB Capital, Al Rajhi Capital, AlJazira Capital, and Alinma Investment—as joint lead managers.

The Kingdom currently maintains one of the lowest debt costs among emerging markets, with an average rate of 3.6% per annum. Its risk profile is supported by a diversified financing strategy, a transparent debt management framework, and ongoing market development.

The move also aligns with the Financial Sector Development Program under Vision 2030, which aims to grow banking sector assets to SAR 3.515 trillion by 2025, increase stock market capitalization, and expand the share of debt instruments in GDP to 24.1%.

Further program goals include increasing SME financing, boosting the insurance sector’s role in the non-oil economy, promoting digital financial solutions, and raising non-cash transactions to 70%, all while adhering to international financial stability standards.