Saudi Arabia’s Listed Sukuk and Bonds Market Rises to SR695.8 Billion in Q3 2025

The total value of sukuk and bonds listed on Saudi Arabia’s Tadawul exchange rose to SR695.8 billion ($185.5 billion) at the end of the third quarter of 2025, marking a 3 percent increase from the previous quarter, according to data from the Saudi Exchange’s quarterly debt market report.

The listed sukuk and bonds represented 18.4 percent of the Kingdom’s gross domestic product, up slightly from 18.2 percent in the second quarter, highlighting the growing role of the debt market in the national economy.

Government sukuk and bonds continued to dominate the market, making up 97.6 percent of total listed debt with a value of SR679.1 billion. Corporate issuances accounted for the remaining 2.4 percent, or SR16.7 billion.

The expansion in listed debt instruments aligns with Saudi Arabia’s broader fiscal strategy to strengthen domestic financing channels and reduce reliance on oil revenues. The National Debt Management Center (NDMC) has played a central role in this effort, with its 2025 borrowing plan outlining funding needs of SR139 billion to cover the projected budget deficit and maturing debts.

As part of this plan, the NDMC completed a domestic sukuk issuance in August worth SR5.31 billion across four tranches. The initiative reflects the government’s ongoing efforts to deepen the domestic debt market and attract a wider base of investors, in line with the goals of Vision 2030 to diversify sources of public financing.

Saudi investors remained the primary holders of listed debt instruments, owning SR677.4 billion, or 97.4 percent of the total. Foreign investors accounted for SR15 billion, representing 2.2 percent, while investors from other Gulf Cooperation Council (GCC) countries held SR3.4 billion, or 0.5 percent.

Despite the rise in market value, trading activity saw a steep decline during the quarter. The total traded value fell by 89 percent to SR1.78 billion, down from SR16 billion in the second quarter. The number of executed trades also dipped to 10,414, compared with 12,251 in the previous period.

The number of listed sukuk and bond issuances edged down slightly to 60 from 61 in the prior quarter.

Over the past five years, Saudi Arabia’s listed sukuk and bond market has nearly doubled in size — from SR358 billion in the first quarter of 2020 to SR695.8 billion in the third quarter of 2025 — underscoring the Kingdom’s steady progress in developing a robust and diversified capital market.