Saudi Arabia’s banking sector is witnessing increased activity in the debt and sukuk markets as major banks aim to boost their capital and support growth. Key players like Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are issuing significant amounts to attract local and international investors.
This trend aligns with the Capital Market Authority’s goal to transform the Kingdom’s investment scene into a vital economic component, as per Vision 2030. The strategy focuses on expanding financing options and drawing in global investors.
Al Rajhi Bank plans to issue US dollar-denominated sustainable sukuk under its international program, approved by the bank’s board. The issuance will be managed by a consortium including Citigroup and Goldman Sachs.
Banque Saudi Fransi is also set to issue US dollar certificates under its Trust Certificate Issuance Program, with HSBC as the global coordinator. This initiative follows a board decision to empower executive management for such tasks.
Arab National Bank has chosen a Saudi Riyal-denominated additional Tier 1 capital sukuk, valued at SR11.25 billion, to strengthen its capital base and support corporate goals. HSBC Saudi Arabia and ANB Capital Co. are the joint managers.
These activities underscore the dynamic growth in Saudi Arabia’s financial markets as banks diversify funding and improve capital adequacy. By emphasizing sustainable finance, Saudi Arabia is aligning with global standards and leveraging its Islamic finance expertise to attract diverse investors.
The CMA aims to expand the debt instruments market to 24.1% of GDP by 2025 through regulatory reforms and improved market access.