Saudi Arabia Raises $1.34bn Through July Sukuk Issuance
Kingdom's National Debt Management Center Issues Four Tranches of Shariah-Compliant Bonds
Riyadh, Saudi Arabia: The National Debt Management Center (NDMC) of Saudi Arabia successfully raised SR5.02 billion ($1.34 billion) through the issuance of riyal-denominated sukuk in July, indicating a significant 113.6% increase compared to June's issuance of SR2.35 billion.
This upward trend follows consecutive issuances of SR4.08 billion and SR3.71 billion in May and April, respectively.Sukuk, adhering to Islamic finance principles, represent a popular financial instrument offering investors partial ownership in the issuer's underlying assets.
The July sukuk issuance was structured into four tranches with varying maturity dates: the first tranche of SR776 million matures in 2029; the second tranche, valued at SR1.34 billion, matures in 2032; the third tranche, worth SR823 million, is due in 2036; and the largest tranche, totaling SR2.08 billion, matures in 2039.The robust growth of Saudi Arabia's debt market in recent years has attracted substantial investor interest in fixed-income instruments, particularly amid a global environment marked by rising interest rates.
Notably, Saudi Arabia led the Gulf Cooperation Council (GCC) in primary debt issuances during the first quarter of the year, raising $31.01 billion from 41 offerings and accounting for over 60% of total regional issuances.Credit rating agency S&P Global highlighted that the Kingdom's expanding non-oil sector and consistent sukuk issuance volumes are likely to bolster the growth of the global Islamic finance industry.
The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings potentially contributing up to $80 billion under stable market conditions.Kamco Invest's report from December echoed a similar positive outlook, anticipating Saudi Arabia to account for the largest share of bond maturities in the GCC between 2025 and 2029, totaling $168 billion.
S&P Global further reiterated its optimistic stance earlier this month, projecting foreign currency-denominated issuances in the global sukuk market to reach between $70 billion and $80 billion in 2025.
This upward trend follows consecutive issuances of SR4.08 billion and SR3.71 billion in May and April, respectively.Sukuk, adhering to Islamic finance principles, represent a popular financial instrument offering investors partial ownership in the issuer's underlying assets.
The July sukuk issuance was structured into four tranches with varying maturity dates: the first tranche of SR776 million matures in 2029; the second tranche, valued at SR1.34 billion, matures in 2032; the third tranche, worth SR823 million, is due in 2036; and the largest tranche, totaling SR2.08 billion, matures in 2039.The robust growth of Saudi Arabia's debt market in recent years has attracted substantial investor interest in fixed-income instruments, particularly amid a global environment marked by rising interest rates.
Notably, Saudi Arabia led the Gulf Cooperation Council (GCC) in primary debt issuances during the first quarter of the year, raising $31.01 billion from 41 offerings and accounting for over 60% of total regional issuances.Credit rating agency S&P Global highlighted that the Kingdom's expanding non-oil sector and consistent sukuk issuance volumes are likely to bolster the growth of the global Islamic finance industry.
The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings potentially contributing up to $80 billion under stable market conditions.Kamco Invest's report from December echoed a similar positive outlook, anticipating Saudi Arabia to account for the largest share of bond maturities in the GCC between 2025 and 2029, totaling $168 billion.
S&P Global further reiterated its optimistic stance earlier this month, projecting foreign currency-denominated issuances in the global sukuk market to reach between $70 billion and $80 billion in 2025.
