Saudi Arabia Raises $1.55bn in November Sukuk Issuance as Domestic Debt Activity Stays Robust

Saudi Arabia’s National Debt Management Center has raised SR5.83 billion ($1.55 billion) in its latest sukuk offering, keeping monthly issuances above the $1 billion mark and underscoring continued strength in the Kingdom’s domestic debt market.

The November issuance was lower than in recent months, marking a 22.7 percent drop from October’s SR7.54 billion. Activity has remained consistent through the second half of the year, with SR8.03 billion issued in September and SR5.31 billion in August.

Sukuk, which comply with Islamic finance rules that prohibit interest-based lending, function similarly to bonds but give investors ownership in underlying assets. They have become a key tool for Saudi Arabia as it diversifies funding sources and expands its capital market.

According to the NDMC, the November offering was split across five tranches with varying maturities. The first tranche, valued at SR700 million, matures in 2027. The second, worth SR1.37 billion, is set to mature in 2029, while the third tranche totals SR180 million with a 2032 maturity date.
A fourth tranche of SR197 million will come due in 2036, and the largest portion—valued at SR3.38 billion—matures in 2039.

Saudi Arabia’s debt market has recorded rapid expansion in recent years as fixed-income products attract stronger investor interest. Rising global interest rates have shifted capital toward more stable and income-generating instruments, helping boost regional demand for sukuk.

The broader Gulf market has mirrored this trend. According to Fitch Ratings, outstanding sukuk issued by Gulf Cooperation Council member states climbed 12.7 percent to $1.1 trillion by the end of the third quarter of 2025. The credit rating agency said activity in the debt capital markets is expected to stay strong into 2026, supported by a steady pipeline of issuances across the region.

Fitch’s report also highlighted that sukuk issuance in the GCC grew 22 percent year on year in the first nine months of 2025, representing 40 percent of all outstanding debt capital market instruments in the bloc. In comparison, traditional bond issuance rose 7.2 percent over the same period.

Saudi Arabia’s steady sukuk program remains central to its broader fiscal strategy, supporting ongoing economic transformation plans while offering investors structured, Shariah-compliant opportunities in one of the region’s largest and most active debt markets.