Saudi Arabia Raises $644 Million in May Sukuk Sale as Borrowing Slows

Saudi Arabia raised SR2.42 billion ($644 million) through its May sukuk issuance, marking a sharp decline from the previous month as the Kingdom eased the pace of borrowing following a major fundraising drive in April.

The National Debt Management Center (NDMC) said the issuance was carried out under the government’s riyal-denominated sukuk program and was split into five tranches with maturities ranging from 2031 to 2041.

Most investor demand focused on mid-range maturities. The tranche maturing in 2036 attracted SR1.01 billion, while the 2039 tranche secured SR1.02 billion. Together, the two accounted for more than 83 percent of the total sale.

The latest issuance comes as Saudi Arabia continues to rely on debt markets to support spending linked to its Vision 2030 economic transformation agenda. The Kingdom has expanded borrowing in recent years to help finance large-scale infrastructure projects, tourism developments and industrial investments, including flagship projects such as Neom, while managing the impact of lower oil revenues.

May’s fundraising total was significantly below April’s SR16.95 billion sukuk issuance, which saw strong appetite for longer-dated debt. In that sale, the 2041 tranche alone drew SR5.68 billion, while the 2036 tranche attracted SR5.67 billion.

Saudi authorities have kept a regular schedule of debt issuances in both local and international markets as government spending remains high and oil price fluctuations continue to affect fiscal planning.

Earlier this month, the NDMC announced it had completed the Kingdom’s annual borrowing plan for 2026, saying it had already secured around 90 percent of Saudi Arabia’s financing requirements before recent geopolitical tensions emerged in the region.

The debt management office said it had selectively reduced international public market borrowing from earlier projections after successfully raising funds through private financing channels and domestic debt markets.

According to the NDMC, any future financing needs identified in coordination with the Ministry of Finance would likely be met primarily through local markets and private funding channels.

The agency added that it would continue monitoring global debt markets and could return to international issuance when market conditions become favorable.

Saudi Arabia has increasingly balanced domestic borrowing with selective international issuances as it seeks to maintain financial flexibility while pursuing ambitious economic diversification plans.