Saudi Arabia Raises $1.34 Billion in July Sukuk Issuance, Marking Over 100% Monthly Surge

Saudi Arabia’s National Debt Management Center (NDMC) announced on Tuesday that it raised SR5.02 billion ($1.34 billion) through its riyal-denominated sukuk issuance for July, representing a sharp 113.6 percent increase compared to the previous month.

The July issuance marks the Kingdom’s strongest sukuk offering in recent months. In comparison, Saudi Arabia raised SR2.35 billion in June, while May and April saw sukuk issuances worth SR4.08 billion and SR3.71 billion, respectively.

Sukuk are Shariah-compliant financial instruments that provide investors with partial ownership in the underlying assets, making them a preferred alternative to conventional bonds in the Islamic finance market.

The NDMC said the July offering was divided into four tranches. The first tranche, valued at SR776 million, will mature in 2029. The second tranche, worth SR1.34 billion, is set to mature in 2032. A third tranche of SR823 million will mature in 2036, while the largest tranche, amounting to SR2.08 billion, will mature in 2039.

The surge in sukuk issuance comes amid growing investor interest in fixed-income instruments, particularly as global interest rates remain elevated. Saudi Arabia’s domestic debt market has shown considerable resilience and growth, reflecting strong demand for Islamic financial products.

According to a report released in April by Kuwait Financial Center (Markaz), Saudi Arabia led the Gulf Cooperation Council (GCC) in primary debt issuances during the first quarter of 2025, raising $31.01 billion through 41 offerings. This accounted for over 60 percent of total issuances across the region.

Credit rating agency S&P Global also acknowledged the Kingdom’s role in strengthening Islamic finance globally. In a recent assessment, the agency said Saudi Arabia’s expanding non-oil economy and consistent sukuk issuance are expected to contribute significantly to the sector’s growth. S&P forecasts global sukuk issuance to range between $190 billion and $200 billion in 2025, with up to $80 billion anticipated from foreign currency-denominated offerings.

Further supporting that outlook, investment firm Kamco Invest projected in a December report that Saudi Arabia would account for the largest share of bond maturities in the GCC between 2025 and 2029, with maturities totaling $168 billion.

S&P Global reiterated this month that the global sukuk market is likely to maintain its growth momentum in 2025, bolstered by stable market conditions and increased international appetite for Shariah-compliant assets.