Saudi Arabia Raises $818 Million in February Sukuk Issuance

Saudi Arabia has successfully raised SR3.07 billion ($818 million) through its February sukuk issuance, reinforcing its commitment to debt markets as part of its economic diversification strategy.

The latest riyals-denominated Islamic bond offering, managed by the National Debt Management Center (NDMC), follows a SR3.72 billion issuance in January and previous sales of SR11.59 billion in December and SR3.41 billion in November, according to official data.

Breakdown of the February Issuance

The NDMC reported that the February issuance was divided into four tranches:

• SR585 million, maturing in 2029
• SR1.70 billion, set to mature in 2032
• SR404 million, due in 2036
• SR376 million, expiring in 2039

Sukuk, a Shariah-compliant financing instrument, enables investors to hold partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia remains a key player in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan.

Saudi Arabia’s Growing Role in Global Debt Markets

Saudi Arabia is expected to drive global debt and sukuk issuance over the next two years, Fitch Ratings said earlier this month. The Kingdom’s financial institutions and corporations are increasingly tapping into international debt markets to diversify their funding sources.

A Fitch report projected that Saudi Arabia’s debt capital market could reach $500 billion by the end of 2025, fueled by major infrastructure and development projects.

Additionally, Saudi Arabia is expected to lead bond and sukuk maturities in the Gulf region, with $168 billion in redemptions anticipated between 2025 and 2029, according to Kamco Invest. Government-issued debt will represent the largest share, with maturities projected to reach $110.2 billion during the period.

Outlook for Global Sukuk Issuance

Across the Gulf Cooperation Council (GCC), the debt capital market surpassed the $1 trillion mark in outstanding issuances by the end of November, Fitch reported.

On a global scale, S&P Global forecasts sukuk issuance to range between $190 billion and $200 billion in 2025, driven by activity in key markets such as Saudi Arabia and Indonesia. In 2024, global sukuk sales totaled $193.4 billion, slightly down from $197.8 billion in 2023.

Saudi Arabia’s continued presence in the sukuk market underscores its strategic efforts to strengthen its financial position and support its long-term economic goals under Vision 2030.