Saudi Arabia’s National Debt Management Center completed its June sukuk issuance, raising SR2.355 billion ($628 million) through the government’s riyal-denominated Islamic bonds. This marks a 42% decrease from May’s peak of SR4.08 billion, illustrating normal month-to-month changes in government borrowing.
The June offering was split across five tranches, with maturities ranging from 2027 to 2039. The largest portion, SR1.175 billion, will mature in 2029, while other tranches vary in size and maturity dates.
Sukuk are Shariah-compliant financial instruments that provide returns linked to assets or projects instead of conventional interest. These products remain popular among investors seeking stable and compliant returns.
Despite the recent decline, Saudi Arabia continues to diversify its funding sources and strengthen its domestic debt market. Monthly issuances have remained consistent throughout the year, with major offerings in January, February, March, and May.
The Kingdom remains the leading issuer of sukuk and bonds in the Gulf region, accounting for over 60% of the GCC’s primary debt activity in the first quarter of 2025, raising $31.01 billion from 41 deals.
Analysts highlight Saudi Arabia’s growing non-oil sector and robust sukuk market as significant contributors to the expansion of global Islamic finance. Projections suggest total sukuk issuance could reach up to $200 billion in 2025, with a substantial share in foreign currencies.
Looking forward, Saudi Arabia is expected to lead the GCC in bond maturities, with approximately $168 billion in bonds set to mature between 2025 and 2029, reinforcing its central position in the regional debt market.