Saudi Arabia’s unlisted sukuk and debt capital market has expanded by around SAR 33 billion ($8.8 billion) in just a few years, according to the kingdom’s Capital Market Authority (CMA).

Overall, the market achieved an annual growth rate of 7.9% since 2019, with the growth primarily concentrated in unlisted issuances, which have increased at an annual rate of 9.6%.

Between 2019 and 2023, the unlisted sukuk and debt market grew from SAR 72 billion to SAR 105 billion, the CMA said.

The regulatory authority also noted that the number of issuers has increased alongside the market’s growth.

Corporate sukuk

The size of the corporate sukuk and debt capital market climbed to SAR 125 billion by the end of last year, up from SAR 95 billion at the end of 2019.

Over the same period, the number of businesses issuing debt instruments has likewise tripled.

Liquidity levels in the market have expanded significantly as well, with the value of trades hitting SAR 2.5 billion in 2023 compared to SAR 0.8 billion in 2019.

(Writing by Cleofe Maceda; editing by Seban Scaria)