Finance Saudi Arabia issues new sukuk worth $16bn By Pramod Kumar May 26, 2025, 9:04 AM Reuters Saudi Arabia will need estimated funding of SAR139 billion in 2025 to cover the potential budget deficit, finance minister Mohammed Al Jadaan has said Saudi Arabia has repaid SAR60 billion ($16 billion) worth of Islamic bonds, or sukuk, maturing over the next five years and simultaneously issued new sukuk of the same value. The initiative aims to bolster the domestic market and meet debt obligations, the National Debt Management Centre (NMDC), which manages the Saudi government’s debt obligations and future maturities, said in a statement. The new sukuk are split into five tranches of SAR21.5 billion, SAR1.8 billion, SAR14.2 billion, SAR5.9 billion and SAR16.9 billion maturing in 2032, 2035, 2036, 2039 and 2040, respectively. HSBC Saudi Arabia, SNB Capital, Al Rajhi Capital, AlJazira Capital and Alinma Investment were appointed joint lead managers by finance ministry and NDMC. Saudi Arabia issues $9.6bn sukuk Saudi Aramco to raise funds via Islamic bonds Saudi Arabia issues $17bn Islamic bonds after early repayment Sukuk were developed as an alternative to conventional bonds that are not considered permissible by many Muslims as they pay interest and may finance businesses involved in activities not allowed under sharia. In January finance minister Mohammed Al Jadaan said Saudi Arabia will need estimated funding of SAR139 billion in 2025 to cover the potential budget deficit. The ministry anticipates a budget deficit of SAR101 billion for the year, with nearly SAR38 billion of debt repayment. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
