Prime Highlight
- Saudi Arabia’s NDMC raised SR5.83 billion ($1.55 billion) through its November sukuk issuance, maintaining monthly offerings above $1 billion for the fourth consecutive month.
- The sustained activity in the domestic sukuk market reflects rising investor interest in Shariah-compliant fixed-income instruments despite a 22.7% decline from October.
Key Facts
- The November sukuk issuance was split into five tranches, with maturities ranging from 2027 to 2039, the largest being SR3.38 billion maturing in 2039.
- GCC sukuk grew 12.7% to $1.1 trillion by Q3 2025, with issuances rising 22% year-on-year in the first nine months, outpacing conventional bond growth.
Background
Saudi Arabia’s National Debt Management Center (NDMC) announced that it raised SR5.83 billion ($1.55 billion) through its November sukuk issuance, keeping its monthly offerings above the $1 billion level for the fourth consecutive month. Despite maintaining strong activity, the November figure marks a 22.7 percent decline from October, when the Kingdom secured SR7.54 billion.
The domestic sukuk market has shown consistent momentum in recent months, with Saudi Arabia issuing SR8.03 billion in September and SR5.31 billion in August. This sustained activity highlights rising investor interest in fixed-income instruments as global interest rates reshape financial markets.
Sukuk are Shariah-compliant securities similar to bonds. Instead of earning interest, investors receive returns linked to underlying assets, in line with Islamic finance principles.
The NDMC said the November issuance was split into five tranches. The first tranche, valued at SR700 million, will mature in 2027. The second tranche totaled SR1.37 billion and will mature in 2029. The third tranche, worth SR180 million, is set to mature in 2032.
The fourth tranche amounted to SR197 million and will mature in 2036, while the largest tranche, valued at SR3.38 billion, will mature in 2039.
Saudi Arabia’s growing debt market forms part of a wider regional trend. Fitch Ratings reported that sukuk in the Gulf Cooperation Council grew 12.7% to $1.1 trillion by the end of the third quarter of 2025. The agency expects strong market activity to continue in 2026, supported by many planned issuances.
Fitch added that sukuk issuances in the GCC increased 22 percent year-on-year in the first nine months of 2025, outpacing bond growth, which rose 7.2 percent during the same period.
