Saudi Arabia Completes SR4.4 Billion Sukuk Issuance for June
In a recent announcement by the National Debt Management Center, Saudi Arabia has successfully completed its riyal-denominated sukuk issuance for June, totaling SR4.4 billion ($1.17 billion).
Three Tranches for Shariah-Compliant Debt Product
The sukuk issuance for June was divided into three tranches, with the first tranche amounting to SR1.6 billion, the second tranche at SR53 million maturing in 2027, and the third tranche at SR2.76 billion maturing in 2034.
Global Sukuk Market Trends
According to a report by S&P Global, the global sukuk issuance is projected to range between $160 billion to $170 billion in 2024. The market began the year on a strong note, with Saudi Arabia playing a significant role in its performance.
The credit-rating agency anticipates continued growth in the sukuk market, driven by financing needs in core Islamic finance countries and ongoing economic transformation programs, including those in Saudi Arabia.
Optimistic Outlook for Sukuk Market Growth
Fitch Ratings also released a report echoing similar sentiments, predicting an expansion of the global sukuk market in the upcoming months. Economic diversification efforts and the development of the debt capital market in the Gulf Cooperation Council region are expected to fuel this growth throughout 2024.