RIYADH: According to analysts who spoke to Arab News, Saudi Arabia’s financial system would encounter both new opportunities and more risk in terms of stability and resilience as it depends more and more on debt markets for funding. The Kingdom’s goals and aspirations for economic diversification outlined in the Vision 2030 program depend on the expansion of sukuk issuance and other debt market activity.
After securing SR3.07 billion in February and SR3.72 billion in January, Saudi Arabia raised SR2.64 billion ($704 million) through sukuk issuances in March. According to a February assessment by Fitch Ratings, the Kingdom has the biggest portion of the debt capital market in the Gulf Cooperation Council, which at the end of January crossed the $1 trillion level.
Across all currencies, this indicated an annual rise of 10%. Saudi Arabia emerged as the world’s largest issuer of sukuk in 2024 and the largest issuer of dollar-denominated debt in emerging economies outside of China, according to another Fitch research released earlier this year. In 2024, the Kingdom’s debt capital market expanded by 20% annually, reaching $432.5 billion in outstanding debt.
Saudi Arabia finances giga-projects like NEOM, the Red Sea, and Qiddiya through the issuing of sukuk, which together demand hundreds of billions of dollars in investment. According to author and technology futurist Ian Khan, this demonstrates the Kingdom’s dedication to Islamic finance as a force for sustainable growth.
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