RIYADH: Saudi Arabia raised SR5.35 billion ($1.42 billion) through its July issuance under the SR-denominated Sukuk Program, down 49 percent from the previous month, official data showed.
The Kingdom’s National Debt Management Center revealed that the July issuance was divided into five tranches, maturing between 2031 and 2041, according to a statement.
The issuance of the Shariah-compliant bonds forms part of the Kingdom’s annual borrowing plan, under which NDMC said it will continue to access domestic and international debt markets to meet financing needs efficiently while maintaining a diversified investor base and managing debt maturities.
The Ministry of Finance expects the budget deficit to reach SR101 billion in 2026, reflecting continued spending on Vision 2030 projects.
The latest sukuk issuance also comes as the International Monetary Fund projects Saudi Arabia’s economy to grow 3.6 percent in 2026, supported by stronger oil output and continued expansion in the non-oil sector. The IMF said sustained investment under Vision 2030 is expected to underpin medium-term growth despite global economic uncertainty.
“Gulf sukuk programs are more of a fiscal regime change than a funding exercise. They allow Gulf governments to decouple multi-year infrastructure spending from oil prices, tap Islamic liquidity pools that conventional bonds can’t reach, and build the domestic yield curves that capital markets need. Gulf sovereigns are not just borrowing; they are building market infrastructure,” Mohammad Nikkar, principal at Arthur D. Little, told Arab News.
July issuance breakdown
According to NDMC, the first tranche, valued at SR3.83 billion, is set to mature in 2031, while the second tranche, amounting to SR515 million, will mature in 2033.
The third tranche, valued at SR204 million, is due in 2036, followed by the fourth tranche, amounting to SR300 million, which is set to mature in 2039. The fifth tranche has a size of SR500 million and is due in 2041.
Sukuk issuances
NDMC has maintained a steady issuance calendar in both domestic and international markets, even as lower oil prices and higher project spending continue to shape the Kingdom’s financing requirements.
Earlier in July, it redeemed SR17.1 billion of domestic sukuk before maturity and simultaneously issued SR17.2 billion in replacement sukuk across five tranches, extending the government’s debt maturity profile through 2041.
In June, Saudi Arabia raised SR10.57 billion through sukuk issuances under the program, while the figure stood at SR2.41 billion in May and SR16.94 billion in April.
