Riyadh: Saudi Arabia’s National Debt Management Center (NDMC) has redeemed SR17.1 billion (US$4.5 billion) of domestic sukuk ahead of their scheduled maturity while simultaneously issuing SR17.2 billion in new sukuk across five tranches. The transaction is part of the Kingdom’s liability management strategy aimed at extending its debt maturity profile through 2041 while strengthening the domestic debt market.
The liability management exercise covers sukuk that were originally due to mature between 2026 and 2030. According to the NDMC, the initiative is designed to smooth future repayment obligations, improve debt management, and support the long-term sustainability of Saudi Arabia’s public finances.
The newly issued sukuk are divided into five tranches with different maturity dates. These include approximately SR1.45 billion maturing in 2031, SR1.62 billion in 2033, SR10.55 billion in 2036, SR1.74 billion in 2039, and SR1.80 billion maturing in 2041. The diversified issuance extends the government’s debt repayment schedule while maintaining a balanced maturity profile.
Saudi Arabia’s debt market continues to expand as the Kingdom advances its economic diversification agenda under Vision 2030. Outstanding debt securities are projected to reach around US$600 billion by the end of 2026, making Saudi Arabia the largest issuer of US dollar-denominated debt and sukuk among emerging markets.
A recent report by Fitch Ratings showed that Saudi Arabia’s outstanding debt exceeded US$520 billion in 2025, representing a 21 percent year-on-year increase. Sukuk accounted for approximately 62 percent of the total outstanding debt, underscoring the growing role of Shariah-compliant financing in the Kingdom’s funding strategy.
In its statement, the NDMC said the transaction reflects its continued efforts to strengthen the domestic debt market while effectively managing government debt obligations and future maturities. The center added that the initiative also supports broader government efforts to enhance and optimize public finances over the medium and long term.
The Ministry of Finance and the National Debt Management Center appointed HSBC Saudi Arabia, SNB Capital, and Al Rajhi Capital as joint lead managers for the transaction, with AlJazira Capital and Alinma Capital also serving as participating financial institutions.