RIYADH: Saudi Arabia raised SR7.86 billion ($2.09 billion) from a domestic sukuk issuance in February, more than tripling January’s sale as the Kingdom accelerates funding through Shariah-compliant debt.
The issuance was split into five tranches, with maturities ranging from 2031 to 2041, the National Debt Management Center said in a release.
The largest portion — SR3.19 billion — matures in 2041, while smaller tranches include SR1.17 billion due in 2031, SR1.38 billion maturing in 2033, SR1.59 billion expiring in 2036 and SR510 million due in 2039.
February’s issuance marks a 248 percent increase from January, when the government raised SR2.26 billion, underscoring growing activity in Saudi Arabia’s local debt market as authorities continue to diversify funding sources.
“The National Debt Management Center announces the closure of February 2026 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program with a total size of SR7.868 billion,” the release added.
Sukuk are Islamic financial instruments that provide investors asset-backed returns instead of interest payments, aligning with Shariah principles that prohibit conventional interest-based lending.
In recent years, the Kingdom’s debt market has experienced swift growth, with investors increasingly turning to fixed-income instruments as rising global interest rates reshape the financial landscape.
In January, a report published by Fitch Ratings revealed that Saudi Arabia’s debt capital market is expected to reach $600 billion in outstanding issuance by the end of 2026, cementing its position as the largest US dollar debt and sukuk issuer among emerging markets.
The report said outstanding Saudi debt surpassed $520 billion in 2025, an annual increase of 21 percent, with sukuk accounting for roughly 62 percent of the total.
The steady momentum in Saudi Arabia’s sukuk market highlights the broader expansion of the Kingdom’s debt markets, as domestic and international investors seek diversification and stable returns.
In 2025, the Kingdom’s dollar debt issuance surged by 49 percent to around $100 billion, with sukuk growth outpacing bonds.
In emerging markets excluding China, Saudi Arabia was both the largest dollar-debt issuer in 2025, with an 18 percent share, and the largest environmental, social and governance dollar-debt issuer, with more than a 26 percent share.
Source: www.arabnews.com