Saudi sukuk, debt market hits 18.3% of GDP in 2023

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The Saudi sukuk and debt instruments market reached 18.30% of GDP by the end of 2023, with 70 sukuk and debt instruments listed on the capital market.

The funds raised from sukuk and debt instrument offerings amounted to SAR 29.95 billion, comprising SAR 29.85 billion from private placements and SAR 100 million from public offerings, according to the Capital Market Authority (CMA) annual report.

The report highlighted significant advancements in the sukuk and debt instruments market, including the adoption of the Debt Market Development Strategy and the removal of the Authority's trading commission on sukuk and bonds to boost secondary market activity and overall liquidity.

Foreign investment in the Saudi capital market reached unprecedented levels in 2023, with net foreign investments totalling SAR 198 billion, a 7.70% increase from 2022. Foreign investor ownership climbed to SAR 401 billion by the end of the year.

The number of offerings and listings in the Saudi capital market soared to 43 in 2023, marking a 79% increase from the target listings.

This included the public offering of shares of seven companies in the main market, the listing of 29 companies in the parallel market, the direct listing of shares of six companies in the parallel market, and the listing of a traded real estate fund.

Mohammed Elkuwaiz, Chairman of the CMA, announced that the authority has completed its strategic plan for 2021-2023 and is preparing to unveil a new strategic plan aligned with Saudi Vision 2030.

In May 2024, Saudi Arabia’s National Debt Management Center (NDMC) issued SAR 3.23 billion sukuk.