Saudi Arabia’s National Debt Management Center announced it raised SR5.31 billion ($1.42 billion) through its riyal-denominated sukuk program. Moreover, this figure represented a 5.8 percent increase compared with the previous month, showing stronger demand from investors.
The latest issuance included four separate tranches with different maturities. Specifically, SR755 million will mature in 2029, and SR465 million will mature in 2032. Furthermore, SR1.12 billion will mature in 2036, while SR2.97 billion will mature in 2039. Consequently, the spread of maturities highlights the government’s efforts to attract a wide range of investors.
Sukuk are Shariah-compliant financial instruments that provide partial ownership in underlying assets. Therefore, they serve as an attractive alternative to conventional bonds. The steady appetite for Saudi sukuk illustrates the country’s leadership role in Islamic finance and reinforces investor trust.
The NDMC explained that the program forms part of its long-term funding strategy. In addition, the government aims to diversify funding sources and strengthen its domestic debt market. By broadening issuance, Saudi Arabia not only secures capital but also develops financial infrastructure. As a result, sukuk help balance fiscal needs with the expansion of investment opportunities.
A recent regional report further confirmed the Kingdom’s dominance in the Gulf debt market. In fact, Saudi Arabia raised $47.9 billion during the first half of the year through 71 deals. These issuances represented over half of the GCC total, emphasizing the Kingdom’s commanding role. Furthermore, analysts noted that consistent sukuk issuance supports broader economic reforms.
Global agencies have also praised this momentum. For instance, S&P projected global sukuk issuance to reach between $190 billion and $200 billion this year. Within that total, as much as $80 billion could come from foreign currency offerings. Clearly, Saudi sukuk remain central to the expansion of international Islamic finance.
This increase reflects strong confidence in the Kingdom’s financial framework. Additionally, regular sukuk issuance enhances liquidity, diversifies investor participation, and strengthens capital markets. Moreover, Saudi Arabia’s consistent activity ensures greater visibility among international investors. Consequently, sukuk have become an essential tool for balancing fiscal policies with economic growth.
The rising demand also signals growing trust in Shariah-compliant instruments. While conventional bonds still dominate some global markets, sukuk provide a clear alternative. Therefore, investors seeking stable and ethical investments increasingly turn to Saudi sukuk. The combination of solid regulation, market depth, and predictable issuance reinforces this shift.
Looking forward, Saudi Arabia is expected to maintain a steady pace of sukuk issuance. Furthermore, policymakers are likely to expand maturities and attract broader participation. This strategy will not only secure stable funding but also strengthen the Kingdom’s position in global Islamic finance. Ultimately, the sukuk market will continue to support diversification goals and long-term economic resilience.
