Saudi Arabia Raises $16.1 Billion by Selling New Sukuk After Paying Off Old Debt Early

Saudi Arabia Raises $16.1 Billion by Selling New Sukuk After Paying Off Old Debt Early

Saudi Arabia has issued new sukuk (Islamic bonds) worth $16.1 billion (SAR 60.4 billion) after paying off part of its existing sukuk early. These old sukuk were supposed to mature over the next four years, according to a statement from the National Debt Management Center (NDMC) on Sunday.

New Sukuk

The NDMC (National Debt Management Center) has issued new sukuk in five parts (called tranches):

• The first part is worth about $5.7 billion (SAR 21.5 billion) and will be paid back in 2032.

• The second part is about $480 million (SAR 1.8 billion) and will be paid back in 2035.

• The third part is around $3.8 billion (SAR 14.2 billion) and will mature in 2036.

• The fourth part is about $1.6 billion (SAR 5.9 billion) and will be paid back in 2039.

• The fifth part is worth around $4.5 billion (SAR 16.9 billion) and will mature in 2040.

The Ministry of Finance and NDMC chose HSBC Saudi Arabia, SNB Capital, Al Rajhi Capital, AlJazira Capital, and Alinma Investment to help manage the sale of these sukuk.

NDMC said this move is part of its ongoing plan to grow the local debt market and manage government debt more effectively. It also supports the country’s financial goals for the medium and long term.

Credit Rating

In February, Fitch Ratings gave Saudi Arabia a long-term credit rating of ‘A+’ with a stable outlook.

This rating shows that Saudi Arabia has strong financial health, with low government debt compared to its economic size and high levels of foreign assets. These figures are better than most countries with similar or even higher ratings.

Global Sukuk Market

The global sukuk market is expected to do well in 2025. S&P Global said in January that total sukuk sales could reach $190–200 billion.

Out of this, sukuk sold in foreign currencies might make up $70–80 billion of the total.

Published: 26th May 2025

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