RIYADH: Saudi Arabia ended its July riyal-denominated sukuk issuance for SR3.21 billion ($855.7 million), according to the National Debt Management Center.
The level was again above SR 3 billion, after an issue level in June of SR 4.4 billion, SR 3.23 billion in May, SR 7.39 billion in April and SR 4.4 billion in March.
NDMC disclosed that the Sharia-compliant debt product was split into five tranches in July.
The first tranche is valued at SR 612 million and will mature in 2029, while the second amounted to SR 159 million due in 2031.
The value of the third tranche amounted to SR 961 million, due in 2034, and the fourth was a tranche of SR 1.25 million due in 2036.
The fifth tranche had a size of SR 226 million due in 2039.
This is part of the Kingdom's Sukuk Issuance Program, which started in 2017, with the aim of establishing an unlimited sukuk initiative under the NDMC.
The announcement by the NDMC came as Kuwait's financial center Markaz published its own figures for bond and sukuk issuance across the Gulf Cooperation Council region for the first half of 2024.
The analysis showed Saudi Arabia was the leading player in the six months to the end of June, raising $37 billion through 44 issues.
A report released by S&P Global in April said global sukuk issuance is expected to hover between $160 billion and $170 billion in 2024, holding steady compared to $168.4 billion in 2023 and $179.4 billion in 2022.
According to the US-based company, issuance of this Shariah-compliant debt product began on a “strong basis” in 2024, with Saudi Arabia becoming a key contributor to the results.
The rating agency also noted that the sukuk market will continue to grow in the short term driven by funding needs in Islamic core financial countries, along with the ongoing economic transformation programs currently underway in nations such as Saudi Arabia.
It added: “The decrease in issuance volumes in 2023, which was mainly due to tighter liquidity conditions in Saudi Arabia's banking system and Indonesia's lower fiscal deficit, was somewhat offset by an increase in foreign currency sukuk issuance.”
In April, another report released by Fitch Ratings also echoed similar views, noting that global sukuk issuance is expected to continue growing in the coming months of this year.
Fitch noted that economic diversification efforts and the rapid development of the debt capital market in the Gulf Cooperation Council region will drive the growth of the sukuk market in the coming months.
