Saudi Arabia’s National Debt Management Center recently announced the closure of the February 2025 issuance under the government SAR-denominated sukuk program, raising a total of SAR3.071 billion ($818.8 million). The Kingdom continues to utilize the debt capital market to support economic diversification efforts under Vision 2030.
Saudi Arabia’s February sukuk issuance was divided into four tranches. The first tranche has a size of SAR585 million and matures in 2029. The second tranche has a size of SAR1.706 billion and matures in 2032. Meanwhile, the third tranche has a size of SAR404 million, maturing in 2036, and the fourth tranche has a size of SAR376 million, maturing in 2039.
In January 2025, Saudi Arabia raised SAR3.724 billion, and SAR11.598 billion in December 2024.
Saudi debt capital market to surpass $500 billion in 2025
The GCC region’s debt capital market reached a milestone of around $1 trillion outstanding at the end of November 2024 following an 11 percent year-on-year expansion. In a recent analysis, Fitch Ratings expected the GCC region’s debt capital markets to grow further and for the region to remain among the largest emerging-market dollar debt issuers in 2025 and 2026, excluding China.
The rating agency also expects the region to remain the largest sukuk issuer and investor globally, noting that 40 percent of its debt capital market is sukuk. Notably, Fitch rates around 70 percent of GCC US dollar sukuk, 81 percent of which is investment-grade, and with no defaults.
Fitch Ratings also expected robust activity in Saudi Arabia’s debt capital market in 2025, driven by Vision 2030 initiatives, deficit funding needs, economic diversification, maturing obligations and ongoing reforms.
In 2024, Saudi Arabia became the largest dollar debt issuer in emerging markets outside China, the largest debt capital market in the GCC, and the largest dollar sukuk issuer globally. Almost all Saudi riyal issuance and ESG issuance in 2024 were in sukuk format.
“2025 started strong, with a growing pipeline of issuances, as we expect the market to surpass $500 billion even as soon as year-end. This growth will be driven by Vision 2030 initiatives and significant government support, alongside favorable funding conditions,” stated Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
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Global sukuk issuance to hit $200 billion in 2025
Global sukuk issuance is likely to reach about $190 billion to $200 billion in 2025, with foreign currency-denominated issuance contributing $70 billion to $80 billion, S&P Global Ratings said in a recent report.
The report noted that total sukuk issuance amounted to $193.4 billion at year-end 2024, slightly down from $197.8 billion a year earlier but with a significant increase in foreign currency-denominated issuance.
