Saudi banks' 2026 sukuk near SAR 30.75 billion

Saudi banks listed on the main market announced sukuk issuances of about SAR 30.75 billion during 2026, as lenders moved to strengthen funding and shore up capital buffers. The total splits into roughly SAR 16.31 billion in riyal-denominated sukuk and about USD 3.85 billion in dollar-denominated issuances, equivalent to nearly SAR 14.43 billion.

The largest single deal came from Riyad Bank, which issued Additional Tier 1 capital sukuk with a final size of SAR 10 billion and an annual yield of 6.50%. The perpetual sukuk, callable after five years, was offered publicly under a SAR 10 billion programme and drew strong demand, with subscription coverage of about 2.7 times and total orders of around SAR 13.59 billion.

Al Rajhi Bank tapped the dollar market twice: a USD 1 billion Tier 1 social sukuk yielding 6.15% (perpetual, callable after five years) and a USD 600 million Tier 2 social sukuk yielding 6.232% over 10.5 years with a call option after 5.25 years. Alinma Bank issued a SAR 3 billion Tier 1 sukuk at 6.50%, while Arab National Bank raised USD 750 million through a perpetual Tier 1 sukuk at 6.50%, callable after five years.

Bank AlJazira added a SAR 1.46 billion perpetual Tier 1 sukuk yielding 6.35% and callable after five years, and Bank Albilad issued Additional Tier 1 capital sukuk in US dollars under a USD 2 billion programme.

For residents and businesses, the wave of issuances signals that Saudi lenders remain well-capitalized and are diversifying their funding as demand for credit grows across the Kingdom. Stronger bank balance sheets typically support continued lending to households and companies, aligning with the broader financing needs of the national economy.

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