Saudi Arabia’s National Debt Management Center has raised SR3.71 billion ($990 million) through its April sukuk issuance, marking a 40% increase over the previous month. This follows a consistent trend of active domestic debt sales, with SR2.64 billion issued in March, SR3.07 billion in February, and SR3.72 billion in January.
Sukuk are Shariah-compliant alternatives to traditional bonds, giving investors partial ownership of assets and adhering to Islamic finance rules that ban interest payments.
The April offering was split into four parts: SR1.31 billion maturing in 2029, SR80 million due in 2032, SR765 million expiring in 2036, and the largest, SR1.55 billion, set for 2039.
Saudi Arabia’s debt market continues to expand, attracting investors searching for stable returns as global interest rates climb. Recent analysis indicates the Kingdom led the Gulf region in primary debt issuances in the year’s first quarter, raising $31.01 billion from 41 offerings and accounting for over half of the GCC’s total activity.
Industry experts suggest that Saudi Arabia’s robust non-oil sector and steady sukuk issuance are key drivers for the global Islamic finance market. Projections estimate global sukuk issuance could reach up to $200 billion in 2025, with foreign currency offerings potentially making up $80 billion if market conditions remain stable.
Looking ahead, Saudi Arabia is expected to hold the largest share of bond maturities in the Gulf from 2025 to 2029, with $168 billion set to mature during that period.