Saudi Arabia has secured SR3.07 billion ($818 million) through its February sukuk issuance, reinforcing its strategy of tapping debt markets to support economic diversification. Managed by the National Debt Management Center (NDMC), this riyal-denominated offering follows a SR3.72 billion issuance in January and SR11.59 billion in December.
Sukuk, a Shariah-compliant financial instrument, enables investors to gain partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia has been a key player in the global sukuk market, using debt sales to fund projects under Vision 2030, its ambitious economic transformation plan.
The February issuance was divided into four tranches: SR585 million maturing in 2029, SR1.70 billion in 2032, SR404 million in 2036, and SR376 million in 2039.
According to Fitch Ratings, Saudi Arabia is expected to play a leading role in global debt and sukuk issuance over the next two years, with financial institutions and corporations expanding their presence in international debt markets. A separate Fitch report projects the Kingdom’s debt capital market to reach $500 billion by the end of 2025, driven by a surge in infrastructure and development projects.
Saudi Arabia is also set to lead bond and sukuk maturities in the Gulf region, with redemptions expected to total $168 billion between 2025 and 2029. Government-issued debt will represent the largest share, with maturities projected to reach $110.2 billion during this period.
The wider Gulf Cooperation Council’s debt market has surpassed the $1 trillion mark in outstanding issuances, reflecting growing investor interest. Meanwhile, global sukuk issuance is expected to remain strong, ranging between $190 billion and $200 billion in 2025, with Saudi Arabia and Indonesia driving market activity.
