Saudi CMA: share of individuals in sukuk and debt instruments market increased to 12.5%

The document (Strategic Directions for Developing the Sukuk and Debt Instruments Market) announced by the Capital Market Authority stated that the share of individuals in the local Sukuk and debt instruments market increased from about 1% at the end of 2021 to about 12.5% ​​by the end of 2023.

The document attributed this increase to the completion of a public offering to issue sukuks during the fourth quarter of 2022, which resulted in the subscription of more than 125,000 individual investors, which in turn supports the diversification of the investor base in the local sukuk and debt instruments market.

The Capital Market Authority confirmed in the document, which included the disclosure of initiatives and programs to develop the Sukuk and debt instruments market, that there is an opportunity for the growth of this market with the possibility of it reaching 18% of the gross domestic product by 2030, with a value of 954 billion riyals.

Note that the Kingdom aims for the gross domestic product to reach 6.4 trillion riyals in 2030. If this rate is achieved, debt instruments will then constitute 30% of the total corporate debt, compared to only 11% currently.

According to the data announced by the Authority, the size of the Sukuk and debt instruments market recorded in 2022 (which it considered the baseline) 130 billion riyals, representing 4.1% of the gross product.