Prime Highlights:
Saudi Arabia raised SR3.72 billion ($990 million) through sukuk in January 2025.
The issuance was split into four tranches, with maturities ranging from 2029 to 2039.
S&P Global projects global sukuk issuance to reach $190-$200 billion in 2025.
Key Background:
Saudi Arabia’s National Debt Management Center (NDMC) successfully raised SR3.72 billion ($990 million) through its latest riyal-denominated sukuk issuance in January 2025. This issuance aligns with the Kingdom’s strategy to maintain a steady flow of Islamic bonds, contributing to the broader trends in global sukuk markets.
The January sukuk were issued in four distinct tranches: SR1.25 billion maturing in 2029, SR1.40 billion maturing in 2032, SR1.03 billion maturing in 2036, and a smaller SR28 million tranche maturing in 2039. This follows a similar pattern seen in previous months, with SR11.59 billion raised in December 2024, SR3.41 billion in November, and SR7.83 billion in October. Sukuk are Shariah-compliant debt instruments that offer investors partial ownership of the issuer’s assets until maturity.
The issuance is consistent with projections from S&P Global, which has forecasted that global sukuk issuances could reach between $190 billion and $200 billion by 2025. This growth is largely attributed to key markets such as Saudi Arabia and Indonesia, which continue to drive demand for these instruments. In 2024, global sukuk issuance amounted to $193.4 billion, a slight dip from $197.8 billion in 2023.
Moreover, a report from Fitch Ratings, released on January 21, highlights the growing market for environmental, social, and governance (ESG) sukuk. Fitch anticipates that the global ESG sukuk market will surpass $50 billion by 2025, with Saudi Arabia playing a pivotal role in this expansion.
As Saudi Arabia continues to prioritize sukuk issuance, it is also facing significant bond maturities in the coming years. A report from Kamco Invest forecasts that between 2025 and 2029, the Kingdom will have the largest share of bond maturities in the Gulf Cooperation Council (GCC), estimated at $168 billion.
