Saudi Sukuk Market 2025: Key Data & Investor Guide

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

In the first quarter of 2025, Saudi’s sukuk market saw fresh issuance totaling SAR 9.435 billion, keeping the country firmly at the top among GCC sukuk issuers. These Shariah-compliant bonds are backed by real assets and are frequently used by both governments and corporations to raise funds. Commonly issued through structures like ijarah and mudarabah, Saudi sukuk are not only central to financing Vision 2030 initiatives but also attract ESG-conscious investors thanks to their transparency and ethical framework.

As a dominant player in the global Islamic finance space, Saudi Arabia continues to shape the future of sukuk in Saudi Arabia by offering a stable, Sharia compliant alternative to conventional bonds. This article outlines how sukuk instruments function, shares updated figures for 2025, reviews evolving regulations, examines key sukuk structures, and provides useful insights for traders and long-term investors alike.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

Understanding sukuk

Sukuk bonds are financial instruments designed to comply with Shariah principles, offering access to asset-based investments while avoiding interest (riba), which is prohibited in Islamic finance. Unlike traditional bonds that reflect debt, sukuk represent shared ownership in tangible assets or income-generating contracts. Investors earn returns through profits derived from these assets rather than fixed interest payments, making them one of the most attractive halal investment options worldwide. Over the past decade, Saudi’s sukuk market has played a growing role in demonstrating how Islamic finance can operate on a national scale while still offering competitive returns.

Core sukuk structures:

Ijarah. This model involves earning rental income from leased assets such as government-owned buildings or public infrastructure.
Murabaha. Used mainly for short-term needs, this structure generates fixed returns by buying and reselling assets at a profit margin.
Mudarabah. Profits are shared between investors and project managers according to a pre-agreed ratio, with risk also being shared.
Wakalah. In this structure, investors appoint an agent to manage the assets on their behalf, a format frequently used in more complex arrangements involving sukuk in Saudi Arabia and other Gulf markets.

Market data (as of 2025):

Estimated $190–200 billion in global sukuk issuance in 2025. This figure is confirmed by S&P Global, which forecasts that total global sukuk issuance will reach between $190 and $200 billion in 2025.
Saudi Arabia issued SAR 9.435 billion in the first quarter of the year. According to public finance reports, the Kingdom issued SAR 3.724 billion in January, SAR 3.071 billion in February, and SAR 2.640 billion in March 2025, totaling SAR 9.435 billion for Q1.
Average sukuk maturity: 5 to 10 years. S&P Global analysis shows most sukuk instruments are structured with maturities in the 5–10 year range, aligning with market trends.
Typical return range: 3.5% to 5.0% annually. Current UAE and GCC sukuk yields fall between 3.4% and 5.1%, with Fitch also projecting returns around 3.5%–4.5% through 2025.
Listed on Tadawul, Nasdaq Dubai, and London Stock Exchange, depending on the issuer. Verified sukuk listings include over $97 billion on Nasdaq Dubai, more than $50 billion on the London Stock Exchange, and regular sovereign issues on Tadawul in Saudi Arabia.

Sukuk issued in Saudi Arabia are regulated by the Capital Market Authority and structured according to standards from AAOIFI and IIFM. Investors include sovereign wealth funds, institutional investors, and private clients seeking exposure to long-term assets with defined cash flows. Many sukuk are linked to financing infrastructure, energy projects, or other public-sector initiatives under Vision 2030.

Saudi Arabia’s position in 2025

Saudi Arabia has become a major player in sukuk in Saudi markets in 2025. In May, the National Debt Management Center issued SAR 60 billion (US $16 billion) of sukuk and bought back debt due from 2025 to 2029. This shows how they’re getting smarter at managing debt and building local benchmarks for investors.

Another shift is issuing Saudi Arabia’s sukuk in US dollars and euros. In 2024, foreign-currency sukuk issuance jumped 29% to $72.7 billion, and Saudi was setting the pace. They're also mixing Islamic bonds with green aims, like the $1.3 billion green sukuk from Saudi Electricity Company.

Regulatory structure and oversight

Saudi Arabia’s sukuk in Saudi are built on its own rules and teams, with the NDMC and central bank managing when and how they’re issued. In May 2025, the NDMC issued SAR 4.08 billion in government sukuk across bonds maturing from 2029 to 2039. They use different maturity dates to spread out borrowing and support Saudi Arabia’s big Vision 2030 plans. Saudi Arabia’s sukuk are structured under national regulatory frameworks, with the National Debt Management Center (NDMC) and Saudi Central Bank (SAMA) overseeing timing and issuance. In May 2025, the NDMC floated SAR 4.08 billion in government sukuk across multiple tranches maturing between 2029 and 2039, designed to optimize debt servicing and align with long-term development goals.

This issuance strategy directly supports the Kingdom’s Vision 2030 — a national transformation plan aimed at reducing oil dependency and diversifying the economy through investment in infrastructure, renewable energy, housing, education, and technology. By spacing maturities and tapping Shariah-compliant funding, Saudi Arabia ensures continuous liquidity for flagship projects like the NEOM mega-city, Red Sea tourism zone, Riyadh Metro, and national renewable energy program.

Types of sukuk issued in Saudi Arabia

Saudi Arabia utilizes a broad range of sukuk structures to fund public and private sector needs. As of 2025, sukuk issuance in the Kingdom is increasingly diversified, with both sovereign and corporate instruments gaining traction. Below is a breakdown by type and function:

Sukuk by category (Q1 2025 estimated breakdown)
Type	Purpose	Estimated share (Q1 2025)	Common structures
Governmental Sukuk	Budget support, debt refinancing, long-term infrastructure	~60% of total issuance	Ijara, Wakala
Corporate Sukuk	Capital raising for banks, utilities, energy, and real estate	~25%	Murabaha, Wakala
Green Sukuk	Financing ESG and sustainability-linked projects	~10% (rising share)	Ijara, Hybrid
Municipal Sukuk	Local government infrastructure and service delivery	~5% (pilot phase)	Wakala, Ijara

Key details and examples

Government Sukuk are issued monthly by the Ministry of Finance and are available for trading on Tadawul. The funds raised are typically directed toward infrastructure projects such as transport, housing, and utilities. This steady issuance pattern is part of a broader national effort to develop structured public debt instruments.
Corporate Sukuk, including offerings from major players like SABIC and Saudi Electricity Co., are generally aimed at both domestic and regional investors. In 2024 alone, corporate issuance volumes surpassed SAR 30 billion, showing strong demand and a growing role for private-sector financing in the Kingdom.
Green Sukuk plays a crucial role in advancing Vision 2030’s environmental goals. As part of this push, Saudi’s sukuk landscape expanded in 2024–2025 with the launch of its first sovereign green issuance. The proceeds are allocated to renewable energy and clean water projects, marking a clear shift toward sustainability-driven funding.
Municipal Sukuk are still in the pilot phase, with cities like Riyadh and Jeddah exploring this model to support local projects such as public transport improvements and affordable housing. These instruments are expected to scale significantly from 2026 onward as frameworks mature.

The Capital Market Authority has supported the growth of these sukuk categories through updated regulations, while the Public Investment Fund (PIF) has occasionally stepped in as an anchor investor, particularly in strategic green and corporate issues. The expansion of sukuk in Saudi Arabia reflects a broader pivot from oil-dependent revenue models to a more diversified financial base grounded in transparent, Sharia-compliant debt markets.

Beyond sukuk bonds, there are other halal investment options available as well in Saudi Arabia. You may refer to our guides below to learn more about them:

Halal stocks in Saudi Arabia.
Halal ETFs and index funds in Saudi Arabia.
Halal mutual funds in Saudi Arabia.

Top 10 sukuk issuers in Saudi Arabia: key financial insights

Saudi Arabia has emerged as one of the world’s most active markets for sukuk (Islamic bonds), driven by sovereign and corporate issuers alike. From financing infrastructure and energy projects to supporting banking and housing sectors, sukuk play a pivotal role in the Kingdom’s Vision 2030 strategy. The following table highlights ten major Saudi sukuk issuers, including details such as issue size, maturity, yield, and use cases — providing investors with a snapshot of this thriving Shariah-compliant asset class.

10 sukuk issuers in Saudi Arabia
Issuer	Sukuk Type	Currency	Amount Issued	Maturity Date	Coupon Rate	Notable Features
Saudi Government (Ministry of Finance)	Sovereign Sukuk	SAR	SAR 5 billion	Various	~3.5%	Regular domestic issuances; benchmark for SAR sukuk market.
Saudi Electricity Company (SEC)	Corporate Sukuk	USD	$1.5 billion	2029	4.22%	Supports infrastructure; strong government backing.
Al Rajhi Bank	Tier 1 Capital Sukuk	SAR	SAR 6.5 billion	Perpetual	4.0%	Enhances capital adequacy; callable after 5 years.
Saudi Real Estate Refinance Co. (SRC)	Corporate Sukuk	SAR	SAR 2 billion	2027	3.75%	Supports housing finance; government-owned entity.
Ma’aden (Saudi Arabian Mining Co.)	Corporate Sukuk	USD	$1.25 billion	2030	5.0%	Funds expansion projects; first international sukuk.
Public Investment Fund (PIF)	Green Sukuk	USD	$500 million	2032	3.5%	Finances green projects; high investor demand.
Saudi Aramco	Corporate Sukuk	USD	$3 billion	2029/2034	3.75%/4.0%	Diversifies funding; aligns with Vision 2030.
Saudi National Bank (SNB)	Tier 1 Capital Sukuk	SAR	SAR 5 billion	Perpetual	4.25%	Strengthens capital base; callable after 5 years.
ACWA Power	Green Sukuk	USD	$1 billion	2031	4.5%	Funds renewable energy projects; supports sustainability goals.
Saudi Telecom Company (STC)	Corporate Sukuk	SAR	SAR 3 billion	2028	3.6%	Enhances network infrastructure; strong market position.

Investor guide: How to access Saudi’s Sukuk

Investing in sukuk from Saudi Arabia is accessible to both institutional and retail investors, including non-Muslims. Here's a brief guide to getting started:

1. Choose market access channel

Local investors can invest directly through banks or brokerage firms authorized by the Capital Market Authority (CMA).
International participants may access Saudi’s sukuk through global platforms like Nasdaq Dubai or the London Stock Exchange, or by investing in international sukuk-focused funds.

2. Select sukuk type

Government sukuk. Backed by the state, offering lower risk and stable returns.
Corporate sukuk. Issued by companies, offering moderate yields that vary across industries.
Green sukuk. Linked to ESG-compliant projects and sustainability goals.

3. Understand the structure

It’s essential to review the underlying contract model before investing. Common structures include ijara (lease-based), mudaraba (profit-sharing), and wakala (agency). Each type affects the payout timeline and overall risk profile.

4. Monitor returns and liquidity

Sukuk typically offer scheduled profit distributions, much like bond coupons. If you may need to exit early, be sure to check the liquidity on the secondary market.

5. Tax and legal considerations

For non-resident investors, it’s important to understand how returns are taxed locally. Some sukuk may benefit from double taxation agreements, especially in the case of sovereign issues.

Strategic role of Sukuk in economic planning

Sukuk continues to play a central role in driving Saudi Arabia’s economic shift under Vision 2030, which focuses on reducing reliance on oil trading and promoting more sustainable, innovation-led sectors. As a financial tool, they’ve become essential to both funding major national projects and supporting broader regulatory reforms. In this transformation, sukuk in Saudi are not only financial instruments but also enablers of long-term development goals.

Key contributions by sector (2024–2025)

Infrastructure. More than SAR 45 billion has been raised through sukuk to finance upgrades in roads, rail systems, and urban development. Major projects include the Riyadh Metro and logistics corridors in Jazan and Dammam.
Energy transition. As part of its push toward renewables, the government issued SAR 8 billion in green sukuk between 2024 and Q1 2025. These funds are helping develop solar projects like Sakaka and wind farms, contributing to the 2030 goal of generating half the nation’s electricity from clean sources.
Housing development. Around SAR 12 billion has been channeled through Saudi Arabia’s sukuk framework to support residential housing under the Sakani initiative and expand projects by the Public Investment Fund’s real estate arms.
Education and health. Approximately SAR 6.5 billion from sukuk proceeds has been allocated to build schools and hospitals, particularly in underserved areas, helping to bridge regional infrastructure gaps.

PIF and GACA participation

The Public Investment Fund (PIF) continues to be a major stakeholder in both issuance and subscription, especially for green and ESG-linked sukuk.
The General Authority of Civil Aviation (GACA) issued sukuk in early 2024 to fund airport upgrades, contributing to the target of tripling tourism arrivals by 2030.

Challenges facing the sukuk market

Here are some of the deeper structural and regulatory challenges that are shaping the future of the sukuk market in Saudi Arabia.

Mismatch in tenors and investor appetite. Retail and institutional investors prefer short to medium durations, while issuers often need long-term capital.
Limited secondary market liquidity. Most sukuk are held to maturity, which makes it harder for new investors to enter or exit mid-cycle.
Complex structuring delays issuance. Shariah boards often differ in opinion, causing delays in finalizing compliant structures that meet both legal and faith-based standards.
Pricing isn't fully market-driven. Government-linked issuances tend to influence benchmarks, crowding out private sector competition and skewing true yield discovery.
Few standardized templates. Each sukuk deal still requires bespoke documentation, which increases issuance costs and slows down market scalability.
Investor base remains narrow. Despite Vision 2030 goals, global demand is still concentrated among a few Islamic banks and regional funds.
Cross-border tax clarity is lacking. Foreign investors face tax uncertainty, especially around withholding tax on sukuk returns, which dampens international participation.

Future prospects of sukuk in Saudi Arabia

The future of sukuk in Saudi Arabia looks promising, driven by technological innovation and growing international demand. Tokenization, i.e. blockchain-based issuance, and green sukuk are emerging trends.

Sukuk contributions by sector (2024–2025 and projections)
Sector	2024–Q1 2025 Allocation (SAR Bn)	Share of Total (%)	Projected Allocation by 2030 (SAR Bn)	Key Projects / Objectives
Infrastructure	45.0	58%	200–250	Riyadh Metro, logistics corridors, Jazan/Dammam transport hubs
Housing Development	12.0	15%	60–80	Sakani program, real estate backed by PIF
Energy Transition	8.0	10%	50–70	Sakaka Solar Plant, Red Sea Wind Farm, NEOM grid projects
Education & Health	6.5	8%	25–35	New public schools, hospitals in remote regions
Other Strategic Areas*	~6.5 (estimated)	~9%	30–40	Tourism infrastructure, aviation (e.g., GACA airport upgrades)

*“Other Strategic Areas” includes tourism, aviation, tech zones, and miscellaneous Vision 2030-linked developments.

For investors who have already exhausted the halal investment options in Saudi Arabia, there is an entire world of Shariah-compliant opportunities available beyond domestic markets. Whether you are considering global halal stocks, Islamic Forex trading, or even halal-certified cryptocurrencies, today’s financial landscape offers a variety of ethical solutions designed for Muslim investors. These platforms are structured to operate without interest, speculative practices, or involvement in non-permissible industries, ensuring your investments remain fully aligned with Islamic investing principles. If you are ready to diversify internationally while staying true to your values, the following list highlights trusted halal-friendly platforms to explore.

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.8	Open an account Your capital is at risk.
RockGlobal	50	200		1.97	Study review
Plus500	60	100	FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)	6.83	Open an account Your capital is at risk.
Pepperstone	90		ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	7.17	Open an account Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.95	Study review

Boost sukuk returns by tracking sovereign project cycles and secondary market demand windows

A powerful but often missed tactic in the Saudi sukuk market is to time your entry based on the lifecycle of national infrastructure projects. Sukuk linked to transport, energy, or housing projects often see a surge in perceived value when these initiatives move from planning to execution, especially once contractors are onboarded or site work begins. If you follow project pipeline announcements from Vision 2030 bodies or PIF-backed ventures, you can get ahead of inflows before prices adjust in the secondary market.

Another insider move is to monitor demand surges tied to liquidity cycles in local Islamic banks. These banks often rebalance their portfolios quarterly, increasing sukuk purchases to meet capital adequacy and Shariah compliance. Watching these calendar cycles can help you sell sukuk with higher premiums during peak demand. Instead of holding till maturity like most beginners do, flipping in these demand windows can offer returns 2–3% higher without added risk.

Conclusion

Saudi Arabia continues to lead the Islamic bond market, issuing over SAR 9 billion in sukuk in early 2025 alone. With strong regulatory backing and alignment with Vision 2030, sukuk serve as vital tools for infrastructure and sustainable finance. For investors, sukuk offer stable, ethical returns and diversification. Future growth is expected via digitalization and ESG integration. Traders should monitor evolving structures and global listings to identify timely opportunities in this expanding market.

FAQs

What makes Sukuk Shariah-compliant?

Sukuk avoid interest and involve ownership in real assets or commercial ventures.

Who can invest in Saudi Sukuk?

Both domestic and international investors, including institutions and individuals.

What is the maturity period of Sukuk in Saudi Arabia?

Ranges from short-term (1 year) to long-term (10+ years).

Can non-Muslim investors buy Saudi sukuk?

Yes, sukuk are open to all investors regardless of religion, as long as they accept the asset-backed and Shariah-compliant structure.

What are the tax implications for sukuk holders?

Tax treatment varies by jurisdiction. In Saudi Arabia, sukuk may offer exemptions under specific state-led programs or sovereign issues.

Team that worked on the article

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.

Learn about our editorial policies

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).