RIYADH: Saudi Arabia raised SR9.52 billion ($2.54 billion) through its August sukuk issuance, an increase of 77.94 percent from July, as the Kingdom continued to deepen its domestic debt market.
In a press release, the National Debt Management Center said the issuance was divided into five tranches, with maturities ranging from 2031 to 2041.
The latest offering comes as Saudi Arabia continues to tap debt markets to help finance its economic diversification agenda under Vision 2030. The strategy allows the Kingdom to maintain fiscal flexibility through a combination of domestic and international borrowing.
Tony Hallside, CEO of STP Partners, said: “The increase in Saudi Arabia’s August sukuk allocation reflects the continued momentum and growing depth of the Kingdom’s domestic debt market.”
He added: “While the 77.94 percent month-on-month rise is notable, the structure of the issuance is equally significant.
“Spread across five tranches maturing between 2031 and 2041, it gives investors access to a broader range of maturities and contributes to the development of the local yield curve.”
Sukuk are Shariah-compliant investment instruments that give investors partial ownership of underlying assets, serving as a popular alternative to conventional bonds. Unlike conventional bonds, sukuk are structured to comply with Shariah principles and do not rely on conventional interest payments.
Five tranches
The first tranche in the August sukuk issuance, valued at SR1.55 billion, is set to mature in 2031, while the second tranche, with a size of SR2.39 billion, will mature in 2033.
The third tranche, valued at SR258 million, is due in 2036, followed by the fourth tranche, amounting to SR4.06 billion, which is set to mature in 2039.
The final tranche is valued at SR1.25 billion and is due in 2041.
The August issuance follows a liability-management transaction in July, when the NDMC redeemed SR17.1 billion of domestic sukuk before maturity and issued SR17.2 billion of replacement sukuk across five tranches. The transaction extended the government’s debt maturity profile through 2041.
The transaction covered sukuk originally due to mature between 2026 and 2030 and forms part of the Kingdom’s strategy to smooth future repayments while strengthening the domestic debt market.
Steady issuance calendar
The NDMC has maintained a steady issuance calendar for domestic sukuk, even as lower oil prices and higher project spending continue to shape the Kingdom’s financing requirements.
In July, Saudi Arabia raised SR5.35 billion through sukuk issuances, while the figure stood at SR10.57 billion in June, SR2.42 billion in May, SR16.94 billion in April and SR15.43 billion in March.
“Consistent sovereign issuance also provides useful pricing benchmarks for corporate and financial-sector issuers, helping to strengthen the wider sukuk ecosystem. As Saudi Arabia advances its economic diversification agenda, sukuk will remain an important component of its funding and debt-management strategy,” said Hallside.
He added: “This regular issuance supports the continued development of the Kingdom’s capital markets and reinforces Saudi Arabia’s position as a leading global center for Islamic finance.”
Saudi leads GCC debt market
Saudi Arabia has also emerged as the largest source of debt issuance in the Gulf this year.
The Kingdom raised $49.34 billion through 58 bond and sukuk issuances in the first half of 2026, up 1.6 percent from a year earlier, according to Kuwait Financial Center, or Markaz.
Saudi-based issuances accounted for 48 percent of total Gulf Cooperation Council issuance value during the period.
The entire GCC region witnessed $102.69 billion in primary issuances through 161 deals during the first half, representing a 6.50 percent rise compared with the same period a year earlier.
