Saudi Arabia’s banking sector is witnessing increased activity in debt and sukuk markets as major banks aim to bolster their capital and support growth initiatives.
Leading institutions like Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are issuing significant financial instruments to attract local and global investors.
This trend aligns with the Capital Market Authority’s Vision 2030, which seeks to transform the Kingdom’s investment market into a crucial economic pillar by expanding financing and attracting international investors.
Al Rajhi Bank plans to issue US dollar-denominated sustainable sukuk under its international program, approved by its board, targeting eligible investors domestically and internationally.
Managing this issuance are Citigroup, HSBC, and Goldman Sachs, serving as joint lead managers and bookrunners.
Similarly, Banque Saudi Fransi intends to issue US dollar certificates under its Trust Certificate Issuance Program, with HSBC coordinating globally and other institutions like Mizuho and Saudi Fransi Capital leading the effort.
Arab National Bank will issue a Saudi Riyal-denominated sukuk valued at SR11.25 billion to enhance its capital base, with HSBC Saudi Arabia and ANB Capital Co. as joint lead managers.
This surge in activity indicates a growing momentum in Saudi financial markets as banks seek to diversify funding and improve capital adequacy.
By focusing on sustainable finance, Saudi Arabia is aligning with international standards and enhancing its role in Islamic finance to attract diverse investors.
The CMA aims to grow the debt instruments market to 24.1% of GDP by 2025 through regulatory reforms and improved market access.