Saudi Arabia continues to strengthen its presence in the debt market, raising SR2.64 billion ($704 million) through sukuk issuances in March. This follows substantial offerings in previous months, as the Kingdom leverages debt instruments to support its Vision 2030 economic transformation.
The March sukuk was issued in four tranches, with maturities ranging from 2027 to 2039. The tranches were valued at SR364 million, SR316 million, SR1.46 billion, and SR500 million, respectively. Sukuk, a Shariah-compliant financial tool, enables investors to own a share of underlying assets while adhering to Islamic finance principles.
Saudi Arabia’s debt market has grown rapidly, attracting increased investor interest even as interest rates climb. Reports indicate that the Kingdom led the Gulf region in primary bond and sukuk issuances in 2024, accounting for over half the total value. Earlier this year, Saudi Arabia also raised €2.25 billion through a euro-denominated bond, which included its first green tranche.
Analysts forecast continued growth in global sukuk issuance, with Saudi Arabia expected to play a major role. The country is also projected to see the largest volume of bond and sukuk maturities in the Gulf over the next several years, primarily driven by government issuances.