Sukuk and debt instruments listed on the Saudi capital market for 2024 demonstrated a growth of 20 percent compared to the previous year, totaling SAR663.5 billion. Saudi Arabia is dedicated to enhancing the sukuk and debt instruments market, which plays a crucial role as a financing channel, through the regulation and facilitation of market activities for debt instruments.
The Capital Market Authority (CMA) issued 25 licenses for new capital market institutions, raising the total to 186 by the end of 2024. Furthermore, revenues of capital market institutions surged by 29.6 percent from the previous year, reaching SAR17 billion ($4.5 billion), while their profits skyrocketed to SAR8.8 billion, indicating a remarkable growth of 39.3 percent compared to the prior year.
The CMA also greenlit four finance-technology (fintech) models, which include licenses for an investment fund distribution model, a real-estate investment fund model, the Robo-advisory model, and a model for issuing and investing in debt instruments, along with a license granted for the social trading model. By the end of 2024, the count of active fintech experiment permits climbed to 46.
Read more: Saudi Arabia closes June 2025 issuance of sukuk program at $627.8 million
Saudi Arabia as a leading sukuk issuer
In addition to the notable growth seen in 2024, recent reports by the Capital Market Authority (Annual Market Report 2024) and the Saudi Arabian Monetary Authority (SAMA Financial Stability Report 2024) highlight the continued expansion of the Saudi debt capital markets.
The International Islamic Financial Market (IIFM) has recognized Saudi Arabia as one of the leading issuers of sukuk globally, attributing the growth to government initiatives aimed at enhancing liquidity and transparency in the market.
According to the SAMA 2024 Financial Stability Report, the overall debt securities outstanding in the Kingdom grew by approximately 18 percent year-on-year, underlining the robust demand from both institutional and retail investors.
Moreover, the Saudi Central Bank’s initiatives to support the fintech sector, in collaboration with the CMA, have fostered innovation in debt issuance platforms and enhanced investor accessibility.
The Capital Market Authority’s Annual Market Report 2024 also emphasizes Saudi Arabia’s strategic role in the GCC sukuk market, where it commands a market share of nearly 40 percent, affirming its position as a regional hub for Islamic finance. These developments are supported by data from the World Bank’s 2024 Doing Business Report, which cites Saudi Arabia’s improvements in financial market infrastructure as key drivers behind investor confidence and heightened market activity.
