Latest news with #NationalDebtManagementCenter
Saudi Gazette
15-07-2025
- Business
- Saudi Gazette
Saudi Arabia completes July sukuk issuance with SR5.02 billion allocation
Saudi Gazette report RIYADH — The National Debt Management Center (NDMC) announced the completion of the July 2025 issuance under the Saudi government's riyal-denominated sukuk program, with a total allocation of SR5.020 billion. According to the NDMC, the issuance was divided into four tranches. The first tranche amounted to SR776 million, maturing in 2029. The second tranche was SR1.340 billion, set to mature in 2032. The third tranche reached SR823 million, maturing in 2036, while the fourth tranche totaled SR2.081 billion, with maturity in 2039. This issuance is part of the Kingdom's ongoing efforts to strengthen the local debt market and support fiscal sustainability.
Arab News
06-07-2025
- Business
- Arab News
Saudi Arabia opens July Sah sukuk subscription with 4.88% annual return
RIYADH: Saudi Arabia has launched the July subscription window for its government-backed savings sukuk, 'Sah,' offering an annual return of 4.88 percent—slightly up from June's 4.76 percent. Part of the 2025 issuance calendar managed by the National Debt Management Center under the Ministry of Finance, the sukuk reflects ongoing efforts to promote financial inclusion and encourage personal savings among Saudi citizens. 'Sah' is issued under the Financial Sector Development Program, a core component of Vision 2030, which aims to raise the national savings rate from 6 percent to 10 percent by 2030. Targeted at individual investors, the product offers a secure, fee-free investment avenue with stable, government-guaranteed returns. The July issuance window opened at 10 a.m. on July 6 and will close at 3 p.m. on July 8. As with previous tranches, the sukuk is Shariah-compliant, denominated in Saudi riyals, and carries a one-year maturity, with fixed returns paid upon redemption. The minimum subscription remains SR1,000 ($266.56), while the maximum is capped at SR200,000 per investor. The marginal increase in return reflects slight shifts in domestic funding costs and market liquidity, as the government responds to growing demand for low-risk savings instruments. Subscription is open to Saudi nationals aged 18 and above through approved digital platforms, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital. The Ministry of Finance has confirmed that monthly issuances will continue, with each offering's yield determined by prevailing market benchmarks. According to NDMC, the sukuk also supports broader collaboration with the private sector, including banks, asset managers, and fintech companies, as the Kingdom works to expand access to savings products and build a more diversified financial ecosystem.
Asharq Al-Awsat
02-07-2025
- Business
- Asharq Al-Awsat
Saudi Arabia Advances Financial Market Development with Investment, Regulatory Reforms
Saudi Arabia is accelerating its efforts to build a comprehensive financial market, driven by substantial investments under the Vision 2030 blueprint, wide-ranging regulatory reforms, and initiatives aimed at attracting foreign capital. According to S&P Global Ratings, the expansion of these markets will enable companies to diversify their funding sources and secure long-term financing. As part of this strategy, the Kingdom is working to establish a local secondary market for riyal-denominated debt instruments supported by a diverse mix of issuers and investors. While large-scale hard-currency issuances by non-financial corporations began only in recent years, their volume has grown significantly. A major step in this transformation was creating a sovereign yield curve in local currency. Saudi Arabia resumed issuing riyal-denominated instruments in 2015 and, two years later, launched a sukuk program through the National Debt Management Center. Monthly issuances of these sukuk established a sovereign benchmark that non-sovereign issuers could reference when pricing their own debt. To broaden market participation, the Debt Management Center partnered in 2018 with five local financial institutions to expand the investor base and improve liquidity in government securities. Additional intermediaries were added in 2021, followed by five international banks in 2022. Also in 2018, Saudi Arabia launched the Financial Sector Development Program to strengthen capital markets, with particular focus on the debt segment. This effort brought together the Capital Market Authority, the Saudi Central Bank, and the Ministry of Finance to coordinate supporting policies and initiatives. On the infrastructure front, Saudi Arabia established the Securities Depository Center (Edaa) and the Securities Clearing Center (Muqassa), while the Saudi Stock Exchange (Tadawul) has significantly upgraded its trading and post-trade platforms. In 2021, Tadawul was restructured into Saudi Tadawul Group Holding to streamline operations and improve governance. Collaboration between Edaa and Euroclear has since enabled foreign investors to access Saudi sukuk and bond markets more easily while enhancing clearing and settlement processes. In 2023, tax treatment of sukuk and debt instruments was further refined to encourage issuance and trading. These measures have helped secure the inclusion of Saudi riyal-denominated bonds in several emerging market bond indices. More recently, the government enacted the Investment Law in 2024 and updated pension regulations to further support capital market development. Despite this progress, S&P notes that the market still requires a broader base of corporate issuers. Outstanding corporate sukuk and bonds more than doubled to $37 billion in the first quarter of 2025, up from $15.5 billion in the same period of 2020. Between early 2020 and 2025, sovereign debt issuances totaled about $92.7 billion, while non-sovereign issuance reached $63.5 billion. For perspective, Saudi banks' loans to the private sector stood at $804 billion as of April 2025. Corporate issuance now accounts for 3.4% of GDP, up from 1.9% five years ago, although still below levels seen in more mature emerging markets. The asset management industry has also expanded rapidly, with assets under management rising to approximately $281 billion by the end of 2024, compared to $88 billion in 2015. S&P projects that, assuming 10% annual growth, assets could approach $500 billion by 2030. A deeper and more liquid domestic debt market is expected to enhance financial stability, reduce reliance on bank loans, and offer a broader range of funding options. Ultimately, these developments support Saudi Arabia's goals of economic diversification and building a more resilient financial system.
Arab News
01-06-2025
- Business
- Arab News
Saudi Arabia opens June round of Sah savings sukuk with 4.76% return
RIYADH: Saudi Arabia has opened the June subscription window for its savings sukuk product 'Sah,' offering a return rate of 4.76 percent, as part of its 2025 issuance calendar. Organized by the National Debt Management Center under the Ministry of Finance, Sah is the Kingdom's first savings-focused sukuk designed for individual investors. The Shariah-compliant, riyal-denominated product is part of the local bonds program aimed at fostering financial inclusion and increasing personal savings. The June issuance opened for subscription from 10 a.m. on Sunday, June 1, until 3 p.m. on Tuesday, June 3. The bonds are structured for a one-year term with fixed returns, and profits will be paid at maturity. The minimum subscription is set at one bond with a value of SR1,000 ($266.56), while the maximum subscription per investor is capped at SR200,000. The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which targets raising the national savings rate from 6 percent to 10 percent by 2030. The June issuance of Sah offers a slightly higher return compared to May, rising to 4.76 percent from the previous month's 4.66 percent, reflecting marginal shifts in market conditions. While both issuances maintain the same structure — Shariah-compliant, riyal-denominated sukuk with a one-year maturity and fixed returns — the June window opened slightly earlier in the month, running from June 1 to June 3, compared to May's window from May 4 to May 6. Subscription terms remain unchanged, with a minimum investment of SR1,000 and a cap of SR200,000 per individual. Both offerings are accessible through the same network of approved financial institutions. Sah is promoted as a secure, fee-free savings instrument offering stable, government-backed returns. Eligible investors must be Saudi nationals aged 18 and above and must subscribe through approved platforms provided by SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al-Rajhi Capital. The sukuk is issued monthly, and the return rate for each tranche is determined based on prevailing market conditions. NDMC CEO Hani Al-Medaini said in March that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.
Saudi Gazette
25-05-2025
- Business
- Saudi Gazette
Saudi Arabia completes SR60.4 billion debt buyback, issues SR60.3 billion in new sukuk
Saudi Gazette report RIYADH — Saudi Arabia's National Debt Management Center (NDMC) has completed an early buyback of government debt maturing between 2025 and 2029, with a total value of approximately SR60.4 billion, while simultaneously issuing SR60.3 billion in new sukuk across five tranches. The initiative is part of NDMC's strategy to enhance the efficiency of public debt management and support the development of the local debt market. It also aligns with broader efforts to strengthen public finances and optimize the government's debt maturity profile over the medium and long term. The new sukuk issuances are structured as follows: The first tranche amounts to SR21.5 billion, maturing in 2032. The second tranche is valued at SR1.8 billion and matures in 2035. The third tranche totals SR14.2 billion with maturity in 2036, while the fourth tranche is SR5.9 billion, maturing in 2039. The fifth and final tranche is SR16.9 billion, with a maturity set for 2040. The transaction reflects continued demand for Saudi sukuk and forms part of the Kingdom's commitment to proactive fiscal planning and sustainable financial policy under Vision 2030. The Ministry of Finance and NDMC appointed HSBC Saudi Arabia, AlAhli Capital, Al Rajhi Capital, AlJazira Capital, and Alinma Investment as joint lead managers for the issuance.
