Saudi Corporate Sukuk Surge Lifts Debt Market in Q2

Saudi Arabia's debt instruments market posted strong growth in the second quarter of 2025, led by a sharp rise in non-listed corporate sukuk and bonds issued by local companies. Non-listed corporate debt jumped 513.8% year-on-year, climbing from roughly SAR 0.2 billion to about SAR 1.2 billion in value.

The expansion builds on years of steady development in the market. The unlisted sukuk and debt capital market grew from SAR 72 billion in 2019 to around SAR 105 billion in 2023 — an increase of roughly SAR 33 billion at an average annual growth rate of 9.6%. The broader corporate sukuk and debt capital market reached SAR 125 billion by the end of 2023, up from SAR 95 billion in 2019.

By the close of 2023, the overall Saudi sukuk and debt instruments market stood at 18.30% of GDP, with 70 sukuk and debt instruments listed on the capital market. Government debt reached approximately SAR 1.685 trillion, equal to 33.9% of GDP, by the end of the second quarter of 2026, while private-market funding channels made up SAR 207 billion, or 52% of total debt raised in 2025.

Why it matters

Momentum has continued into 2026. In June, the government raised SAR 10.57 billion through a domestic sukuk issuance, up 338.58% from the previous month, and the "Sah" savings sukuk program opened its second round of the year with an annual return of 4.58%.

The market spans sovereign issuances by the National Debt Management Center, quasi-sovereign issuances, and rising corporate sukuk from private-sector firms. Domestic sukuk and bonds are listed and traded on the Saudi Exchange (Tadawul), with trading hours generally from 10:00 a.m. to 3:00 p.m. local time. Large Saudi companies such as إس تي سي and other major issuers have increasingly used capital markets for long-term financing and funding diversification — a trend that widens investment options for institutions and supports deeper, more resilient local financial markets.

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