Saudi Arabia Raises $3.25bn in Dual-Tranche Sukuk

Saudi Arabia returned to international US dollar markets in early September 2026 with a dual-tranche sukuk issuance under its Global Trust Certificate Issuance Program, raising a total of USD 3.25 billion to support its 2026 financing needs and diversify funding sources.

The offering was split into two parts. The first tranche raised USD 1.25 billion in a five-year sukuk maturing in 2031, priced at about 70 basis points over US Treasuries. The second tranche raised USD 2.0 billion in a ten-year sukuk maturing in 2036, priced at about 80 basis points over US Treasuries. Both tranches were tightened from initial price thoughts of around 100 and 110 basis points respectively, reflecting strong appetite.

Investor demand was robust, with the order book reaching around USD 16.5 billion — roughly five times the size of the USD 3.25 billion offering.

Why it matters

The issuance forms part of a broader funding strategy that balances domestic and international markets using bonds, sukuk, and loans at fair cost. Government funding needs for 2026 are projected at about SAR 217 billion, covering an estimated SAR 165 billion budget deficit and SAR 52 billion in maturing debt principal repayments.

The proceeds also contribute to financing projects linked to رؤية السعودية 2030 and the continued expansion of the Kingdom's debt capital markets through 2027. On the domestic side, SAR-denominated government sukuk have remained active, including SAR 2.269 billion allocated in January 2026, about SAR 16.95 billion in April, and around SAR 10.57 billion in June. Overall, Saudi Arabia's outstanding debt capital market of bonds and sukuk is projected to reach roughly USD 600 billion by the end of 2026.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving