Saudi Arabia raised SR7.86 billion (approximately $2.09 billion) through a domestic sukuk issuance in February 2026, more than tripling the amount raised in January, as the Kingdom continues to expand its Shariah-compliant debt financing. The issuance was conducted under the Saudi Arabian Government SAR-denominated Sukuk Program, according to the National Debt Management Center (NDMC).
The NDMC announced the closure of the February issuance with a total size of SR7.868 billion. 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 tranches 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.
February’s issuance marked a 248 percent increase compared to January, when the government raised SR2.26 billion. The sharp rise reflects growing momentum in Saudi Arabia’s domestic debt market as authorities continue to diversify funding sources and strengthen fiscal sustainability through Islamic finance instruments.
Sukuk are Islamic financial instruments structured to provide investors with asset-backed returns rather than interest payments, in line with Shariah principles that prohibit conventional interest-based lending. In recent years, Saudi Arabia has increasingly relied on sukuk as part of its broader debt management strategy.
The Kingdom’s debt capital market has experienced rapid expansion, supported by strong investor demand for fixed-income instruments amid evolving global interest rate conditions. A recent report by Fitch Ratings projected that Saudi Arabia’s debt capital market will reach $600 billion in outstanding issuance by the end of 2026, reinforcing its position as the largest US dollar debt and sukuk issuer among emerging markets.
According to the report, outstanding Saudi debt surpassed $520 billion in 2025, representing an annual increase of 21 percent, with sukuk accounting for around 62 percent of the total. In 2025, the Kingdom’s dollar-denominated debt issuance rose by 49 percent to approximately $100 billion, with sukuk growth outpacing conventional bond issuance.
Among emerging markets excluding China, Saudi Arabia ranked as the largest dollar-debt issuer in 2025, holding an 18 percent market share. It also emerged as the leading issuer of environmental, social, and governance (ESG) dollar-denominated debt, accounting for more than 26 percent of the total.
The continued growth of Saudi Arabia’s sukuk market highlights the broader development of the Kingdom’s debt markets, as domestic and international investors increasingly seek diversification opportunities and stable, Shariah-compliant returns.