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Saudi Arabia Raises $2.09 Billion Through February Sukuk Issuance, Marking 248% Jump from January

Prime Highlights

  • Saudi Arabia raised 86 billion ($2.09 billion)in February via a domestic sukuk issuance, a sharp increase from January’s SR2.26 billion, reflecting a growing focus on Shariah-compliant funding.
  • The issuance, split across five tranches with maturities from 2031 to 2041, underscores the Kingdom’s strategy to diversify financing through Islamic financial instruments.

Key Facts

  • The largest tranche of the sukuk issuance, 19 billion, will mature in 2041, while other tranches range from SR510 million to SR1.59 billionwith staggered maturities.
  • Sukuk accounted for almost 62% of Saudi Arabia’s outstanding debt, which rose 21% in 2025 to over $520 billion, with the debt capital market projected to reach $600 billion by end-2026.

Background

Saudi Arabia raised SR7.86 billion ($2.09 billion) through a domestic sukuk issuance in February, marking a sharp rise from January’s sale as the Kingdom steps up funding through Shariah-compliant instruments.

The National Debt Management Center said the February issuance was completed under the government’s riyal-denominated sukuk program. The offering was divided into five tranches with maturities ranging from 2031 to 2041.

The largest tranche, valued at SR3.19 billion, will mature in 2041. Other portions include SR1.17 billion due in 2031, SR1.38 billion maturing in 2033, SR1.59 billion expiring in 2036, and SR510 million due in 2039.

The February sale represents a 248 percent increase compared to January, when the government raised SR2.26 billion. The sharp rise shows that the domestic debt market is more active as authorities try different ways to raise funds.

Sukuk are Islamic financial instruments that offer asset-backed returns instead of interest payments, in line with Shariah principles. They have become a key part of Saudi Arabia’s financing strategy.

According to Fitch Ratings, the Kingdom’s debt capital market is expected to reach $600 billion in outstanding issuance by the end of 2026. Outstanding debt crossed $520 billion in 2025, rising 21 percent from the previous year, with sukuk making up almost 62 percent of it.

In 2025, Saudi Arabia led emerging markets in issuing dollar-denominated debt with an 18 percent share and topped ESG dollar-debt issuance with over a 26 percent share.