Saudi Arabia Continues to Dominate Sukuk Market with Billion-Dollar Issuances
In a show of strength, Saudi Arabia wrapped up its riyal-denominated sukuk issuance above $1 billion for the fourth consecutive month in March, as per government data.
The Kingdom’s National Debt Management Center announced the closure of three tranches of the Shariah-compliant debt product, totaling SR4.44 billion ($1.18 billion).
After a slight dip in November below the billion-dollar mark at SR2.66 billion, the issuance rebounded in December to SR10.53 billion. In January and February, it stood at SR8.82 billion and SR7.87 billion, respectively.
The first tranche in March, valued at SR203 million, will mature in 2029, while the second tranche worth SR3.69 billion is due in 2034. The third tranche, valued at SR540 million, has a maturity date in 2039.
Meanwhile, the NDMC recently completed its second government sukuk savings round for March, with requests totaling SR959 million allocated to 37,000 applicants. The financial product, known as Sah, promises a return of 5.64 percent and matures in March 2025.
Looking ahead, a report by S&P Global predicts that worldwide sukuk issuance will range between $160 billion and $170 billion in 2024, driven by increased financing needs in Islamic nations.
Furthermore, Fitch Ratings anticipates that the ESG market for Shariah-compliant debt products will surpass 7.5 percent of global outstanding Islamic bonds in the near future, fueled by issuers’ diversification strategies and governmental sustainable initiatives.