Saudi Arabia’s National Debt Management Center (NDMC) closed its August 2024 sukuk issuance at SAR 6.018 billion ($1.60 billion). This marks an 87.22% increase compared to the July issuance. The August issuance ranks as the third highest in 2024, following the SAR 8.82 billion issued in January and SAR 7.39 billion in April.
Issuance Breakdown and Maturity
The NDMC divided the August issuance into five tranches. The first tranche, valued at SAR 2.818 billion, will mature in 2029. The second tranche, totaling SAR 1.992 billion, has a maturity date in 2031. The third tranche, worth SAR 152 million, will mature in 2034. The fourth tranche, set at SAR 415 million, scheduled to mature in 2036. Finally, the fifth tranche, valued at SAR 642 million, will mature in 2039.
Sukuk Market Leadership and Regional Impact
The NDMC‘s consistent issuance efforts align with Saudi Arabia’s strategy to strengthen financial stability and develop the local debt market. Establishing an unlimited riyal-denominated Islamic bond initiative under the NDMC forms part of the Kingdom’s Sukuk Issuance Program, which began in 2017.
In recent reports, Kuwait’s financial center, Markaz, revealed that Saudi Arabia led the Gulf Cooperation Council (GCC) region in sukuk issuance for the first half of 2024. The Kingdom raised $37 billion through 44 issuances, further cementing its leadership in the Islamic bond market.
Global Sukuk Market Trends
Globally, the sukuk market remains stable. S&P Global, in an April report, projected that global sukuk issuance would range between $160 billion and $170 billion in 2024. This projection is consistent with the $168.4 billion issued in 2023 and the $179.4 billion issued in 2022.
The growth in the sukuk market, according to the report, is driven by financing needs in core Islamic finance countries, including Saudi Arabia, which continues to undergo significant economic transformation.