Saudi Arabia tops foreign currency sukuk issuances with a 39% share in H1,2025

Standard & Poor’s revealed that Saudi Arabia continued its pivotal role in the global sukuk market during the first half of 2025, despite a decline in local currency-denominated issuances. According to the report, Saudi issuers accounted for 38.9% of total foreign currency-denominated sukuk issuances, indicating the strength of Saudi Arabia’s presence in international markets, benefiting from the active role of local banks in financing Vision 2030 projects.

The data showed that the Kingdom witnessed a significant decline in riyal-denominated sukuk issuances, due to improved financial performance and reduced government financing needs. This was reflected in the Saudi Central Bank also reducing its issuances. However, Saudi banks took advantage of available opportunities to enter the market, maintaining the Kingdom’s high contribution to the global market. The report indicated that Saudi Arabia has yet to witness the emergence of an effective market for mortgage-backed sukuk, attributing this to the weak legal and regulatory framework for transferring ownership of assets in cases of default, which limits investors’ appetite for instruments with real guarantees.

According to the agency, Saudi bank issuances played a key role in supporting liquidity and financing major initiatives within the “Vision 2030” programs. This reflects a harmony between government and banking sector orientations, coupled with the relative stability of geopolitical risks, enhancing the Saudi market’s ability to maintain its leading position.

These figures confirm that Saudi Arabia remains a major player in financing the Islamic economy, and that the shift from government to bank issuances does not mean a decline in presence, but rather a repositioning among the priorities of the next phase.