Saudi Arabia raises $1.42bn sukuk issuance in August

Saudi Arabia’s National Debt Management Center (NDMC) raised 5.31 billion Saudi riyals ($1.42 billion) through its August sukuk issuance, marking a 5.8% increase from July and the Kingdom’s largest offering in three months.

The NDMC said the latest issuance underlines ongoing efforts to diversify funding sources and strengthen the domestic debt market. The riyal-denominated sukuk was issued in four tranches: 755 million Saudi riyals maturing in 2029, 465 million in 2032, 1.12 billion in 2036, and 2.97 billion Saudi riyals in 2039.

Sukuk, Shariah-compliant instruments that grant investors partial ownership of underlying assets, continue to attract strong demand from regional and international investors seeking alternatives to conventional bonds.

The Kingdom’s sukuk program has seen steady momentum this year, with 5.02 billion Saudi riyals raised in July, 2.35 billion in June, and 4.08 billion in May. A recent report by Kuwait Financial Centre (Markaz) showed Saudi Arabia led the Gulf’s debt market in the first half of 2025, accounting for 52% of the GCC total by raising $47.9 billion through 71 bond and sukuk deals.

Global ratings agency S&P has also underscored Saudi Arabia’s central role in Islamic finance, forecasting global sukuk issuance to reach between $190 billion and $200 billion in 2025, with as much as $80 billion expected in foreign currency offerings.