Saudi Arabia Raises $3.25bn in Dollar Sukuk

Saudi Arabia raised $3.25 billion through a two-tranche US dollar Islamic sukuk, part of the Kingdom's 2026 borrowing plan aimed at meeting its financing needs for the year.

The issuance was split into two portions: a $1.25 billion tranche maturing in 2031 and a larger $2 billion tranche maturing in 2036. Final pricing came in at 70 basis points over US Treasuries for the 2031 tranche and 80 basis points over US Treasuries for the 2036 tranche.

Investor appetite was strong, with the offering drawing orders of about $16.5 billion — roughly five times the amount raised. The heavy demand reflects continued confidence in the Kingdom's creditworthiness among international investors.

Part of the 2026 borrowing plan

The sukuk forms part of Saudi Arabia's 2026 borrowing plan, which projected total funding needs of around SAR 217 billion. That figure covers an expected budget deficit of about SAR 165 billion along with roughly SAR 52 billion in debt principal repayments falling due during the year.

For residents and businesses across the Kingdom, such issuances matter because they help the government fund ongoing spending on infrastructure, services and development projects without disrupting day-to-day economic activity. Diversified and well-received borrowing supports steady public investment, a cornerstone of the country's long-term economic plans.

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