Saudi Arabia’s debt markets remain active and attract a strong demand from investors. The market has also benefited from a diverse range of corporations and banks increasingly turning to sukuk and bonds for financing.
The momentum is visible across the curve: Saudi Arabia opened in September with a USD 5.5 billion dual-tranche sovereign Ijara sukuk that drew roughly USD 19 billion in orders, followed by PIF’s USD 2 billion 10-year bond, which was covered 4 times and Aramco’s USD 3 billion dual-tranche sukuk with the 5-year bond issue priced at 4.125% and the 10-year at 4.625% with the total order reaching more than USD 16.8 billion. Other large firms contributed to the market trend earlier this year: Saudi Electricity Company issued USD 2.75 billion in debt across two sukuk tranches, including a 10-year green sukuk tranche, while Ma’aden completed a USD 1.25 billion debut sukuk that was oversubscribed 9.2 times.
Debt issuance was particularly active in the financial sector. By the end of August, Saudi banks had issued USD 9.5 billion in sukuk, including USD 4.2 billion of AT1, evidence of balance-sheet optimization amid strong credit growth. That momentum carried into September: Al Rajhi Bank raised USD 1 billion in 10-year sukuk at 5.65%; Bank AlJazira issued USD 500 million worth of AT1 sukuks; and Almarai issued USD 500 million in 5-year sukuk at 4.45%, with orders reaching USD 2.1 billion. However, Saudi issuers still posted a softer first half of the year with USD 47.9 billion across 71 deals, 20% year-on-year lower.
Nevertheless, robust oversubscription across sovereign, GRE, banks, and corporate debt is giving issuers efficient access to longer-tenor funding, while offering global investors high-quality exposure to leading Saudi entities.
