Saudi Arabia has raised approximately 3.2 billion riyals from its May offering of local sukuk, according to the National Debt Management Center (NDMC).
Details
The center revealed the completion of receiving investor requests for the local issuance for the current month. This falls within the Saudi government’s sukuk program in Saudi riyals.
So What
The Sharia-compliant issuances were divided into two tranches as follows:
– The first tranche amounted to 71 million riyals for sukuk maturing in 2029.
– The second tranche amounted to 3.16 million riyals for sukuk maturing in 2036.
Some Context
Saudi Arabia recorded a deficit of 12.4 billion riyals during the first three months of the current year, marking the “sixth consecutive quarterly deficit.”
Revenues amounted to 293.4 billion riyals, while expenditures reached a record 305.8 billion riyals.
The total deficit for the budget of the largest Arab economy is expected to reach 79 billion riyals this year.
Now What
The government plans to increase financing operations during the current year to 138 billion riyals, according to its annual borrowing plan.
Part of the amount has already been covered in the previous months of this year.
This step aims to leverage debt markets to provide “preemptive financing” for the coming year. It will be used to bolster state reserves or create additional opportunities to enhance “transformational spending” this year. This is to accelerate the implementation of strategic projects and Vision 2030 programs.
