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Saudi Arabia Raises $704 Million through Sukuk Issuances

Prime Highlights: 

Saudi Arabia raises $704 million through sukuk issuances in March 2025, part of its ongoing efforts to fund economic diversification under Vision 2030. 

The issuance was divided into four tranches, with maturities ranging from 2027 to 2039.   

Global sukuk issuance is expected to reach $190 billion to $200 billion in 2025, with Saudi Arabia and Indonesia leading the way. 

Key Background: 

Saudi Arabia successfully raised SR2.64 billion ($704 million) through a series of sukuk issuances, reinforcing its strategy to diversify the economy and finance projects under its Vision 2030 transformation plan. The issuance was divided into four tranches, with maturities spanning from 2027 to 2039. The first tranche, valued at SR364 million, is set to mature in 2027, followed by SR316 million due in 2029. The third tranche, amounting to SR1.46 billion, will mature in 2032, while the fourth tranche, valued at SR500 million, will expire in 2039. 

This latest sukuk offering follows two significant issuances in the earlier months of 2025: SR3.07 billion in February and SR3.72 billion in January. The Kingdom has consistently raised funds through sukuk, with notable issuances of SR11.59 billion in December 2024 and SR3.41 billion in November 2024. 

Saudi Arabia has become a key player in the global sukuk market, capitalizing on debt sales to finance its ambitious Vision 2030 initiatives. Sukuk, a Shariah-compliant investment instrument, provides investors with partial ownership of the issuer’s assets, aligning with Islamic finance principles. 

Saudi Arabia’s robust participation in the debt markets is underscored by its leadership in the Gulf Cooperation Council (GCC) region. In 2024, the Kingdom accounted for 53.7% of the total primary debt issuances in the GCC, raising $79.5 billion across 79 issuances, according to Kuwait Financial Center’s Markaz. The Kingdom’s debt market continues to attract investor interest, with global sukuk issuance projected to reach between $190 billion and $200 billion in 2025, driven largely by key markets such as Saudi Arabia and Indonesia.