Saudi Arabia has successfully repaid SAR60 billion (approximately $16 billion) in sukuk, or Islamic bonds, that are set to mature over the next five years. In conjunction with this repayment, the kingdom has issued a new sukuk of the same value to support its domestic market and meet its debt obligations, according to a statement from the National Debt Management Centre (NDMC).

The newly issued sukuk is divided into five tranches, which include amounts of SAR21.5 billion, SAR1.8 billion, SAR14.2 billion, SAR5.9 billion, and SAR16.9 billion. These sukuk are scheduled to mature in 2032, 2035, 2036, 2039, and 2040, respectively.

The finance ministry, along with the NDMC, appointed HSBC Saudi Arabia, SNB Capital, Al Rajhi Capital, AlJazira Capital, and Alinma Investment as joint lead managers for this issuance. Sukuk are sharia-compliant bonds that serve as an alternative to conventional bonds, which many Muslims consider impermissible.

In a previous statement made in January, Finance Minister Mohammed Al Jadaan projected that Saudi Arabia would require approximately SAR139 billion in funding in 2025 to cover a potential budget deficit. The ministry is anticipating a budget deficit of SAR101 billion for that year, which includes nearly SAR38 billion allocated for debt repayments.