Saudi Arabia’s sukuk and debt instruments market has witnessed continued growth over the past year, reaching SAR 859.45 billion by the end of April 2026, compared to SAR 798.62 billion in May 2025, an increase of SAR 60.83 billion, or 7.62%.
The market’s size relative to GDP increased to 17.95% last April, compared to 17.06% in May 2025, backed by continued government issuances, increased activity by banks and financial institutions, and growth in private placements.
This growth coincided with the Saudi Exchange’s (Tadawul) release of draft amendments to its market rules aimed at developing the Sukuk/Bonds Market by establishing a regulatory framework for listing asset-backed debt instruments, paving the way for new financing instruments, while enhancing market depth and improving disclosure and transparency.
Key Market Indicators
Index
April 2026 Reading
Total market size
SAR 859.45 bln
Growth since May 2025
SAR 60.83 bln
Growth rate
7.62%
Market-to-GDP ratio
17.95%
Listed market
SAR 744.18 bln
Unlisted market
SAR 115.27 bln
Key Proposed Amendments
The proposed amendments focus on preparing the regulatory environment for listing asset-backed debt instruments by introducing new definitions, establishing disclosure requirements, and regulating the responsibilities of issuance parties, thereby enhancing the clarity of the regulatory framework and strengthening investor protection.
Proposed Amendment
Expected Impact
Establishing a framework for listing asset-backed debt instruments
Expands the range of debt instruments available in the market
Introducing definitions such as originator, trustee, and principal obligor
Improves clarity of roles and responsibilities
Creating a separate appendix for listing asset-backed debt instruments
Regulates listing and disclosure requirements
Enhancing disclosure requirements
Improves transparency and investor protection
Regulating the responsibilities of issuance parties
Strengthens governance and reduces operational risks
Market Structure
The listed market accounted for the largest share of the total Sukuk and debt instruments market, with a value of SAR 744.18 billion at the end of April 2026, or 86.59% of the total market, while the unlisted market stood at SAR 115.27 billion, representing 13.41%.
Market Structure
Item
Value (SAR bln)
Share
Listed market
744.18
86.59%
Unlisted market
115.27
13.41%
Total
859.45
100.00%
Government Issuances Dominance
Listed government Sukuk and bonds totaled SAR 724.97 billion, or 97.42% of the listed market in April 2026, compared to SAR 19.21 billion for corporate Sukuk and bonds, accounting for 2.58%.
Distribution of Listed Sukuk and Bonds
Category
Value (SAR bln)
Share
Government
724.97
97.42%
Corporate
19.21
2.58%
Total
744.18
100%
Ownership of Listed Sukuk and Bonds Is Concentrated Among Corporates
The total value of ownership of listed sukuk and bonds rose to SAR 730.5 billion by the end of Q1 2026, compared to SAR 642 billion in Q1 2025, an increase of 13.8%.
Ownership by Investor Type by End of Q1 2026)
Category
Number of Holders
Ownership Value (SAR bln)
Corporates
135
565.05
Government and quasi-government entities
35
144.82
Retail
52052
11.30
Funds
59
9.30
Total
52281
730.47
The ownership distribution reflects the broadening investor base in the market. While individuals account for the largest number of holders, the largest ownership values remain concentrated among companies and government and quasi-government entities, confirming that the market remains predominantly institutional in terms of ownership value.
Private Placements Drive Growth in the Debt Market
Private placements continued to strengthen their presence in the debt market, with the number of unlisted private placements increasing to 125 by the end of April 2026, a growth of 56.25% compared to 80 a year earlier. This reflected companies’ and financial institutions’ increasing reliance on private placements, while public corporate offerings remain relatively limited.
Public and Private Offerings in April 2026
Offering Type
Category
Number of Offerings
Public listed offerings
Government sukuk and bonds
55
Public listed offerings
Government sukuk and bonds
9
Private placements
Corporate sukuk and bonds
125
This indicated that the listed market continues to be driven by government issuances, while the private sector’s growth momentum is concentrated in unlisted private placements.
Banks Led Private-Sector Issuances
Banks and financial institutions led private-sector debt issuances, with eight issuers completing 25 offerings during the first quarter of 2026, compared to eight non-financial companies completing 11 offerings. This reflects banks’ continued use of debt instruments, whether to support capital or diversify funding sources.
Issuers and Offerings by Entity Type in Q1 2026
Category
Number of Issuers
Number of Offerings
Government Entities
1
6
Banks and financial institutions
8
25
Non-financial companies
8
11
February Saw Highest Value in 12 Months
Trading activity in the listed market fluctuated during the 12 months ended April 2026. February 2026 recorded the highest trading value at SAR 3.6 billion, while August 2025 recorded the lowest at SAR 427.4 million.
Trading value reached SAR 1.17 billion in April 2026, compared to SAR 525 million in the previous month, reflecting a month-on-month improvement despite continued volatility in trading activity.
Month
Trading Value (SAR bln)
May 2025
3.04
June 2025
3.43
July 2025
0.84
August 2025
0.43
Sept. 2025
0.51
October 2025
0.82
Nov. 2025
2.65
Dec. 2025
0.72
January 2026
2.06
Feb. 2026
3.60
March 2026
0.52
April 2026
1.17
What Do the Amendments Mean for the Market?
Saad Al-Thaqfan, economic analyst and board member of the Saudi Economic Association, said that the Financial Sector Development Program, including the capital market, has recently contributed to introducing legislation and regulations for new products needed by the economy and investors, including securitization.
Regulating asset-backed debt instruments is set to boost the liquidity of debt instruments in the capital market and attract new domestic and foreign investments, he added.
The analyst also pointed out that the existence of bank assets that are suitable for securitization, particularly mortgage-backed loans, which account for around 30% of total loans, could help attract new investors and reduce the cost of these loans, given the availability of a mechanism through which they can be sold or restructured.
For his part, Saad Al-Furaidi, Acting CEO of Dome Capital Financial Co., said that the proposed amendments related to asset-backed debt instruments represent an important step toward strengthening the regulatory framework for this type of instrument and expanding financing options available to the private sector.
He told Argaam that these proposed amendments would enhance the depth and efficiency of the Saudi debt market and improve the financing efficiency of productive assets, in line with the objectives of developing the capital market and Saudi Vision 2030.
“Moreover, the proposed amendments will help diversify the investment instruments available in the market, while also opening additional financing channels for companies that own assets or have stable cash flows,” Al-Furaidi stated.
He noted that securitization provides companies with an additional financing channel and also helps unlock liquidity tied to assets and redeploy it into financing new projects and investments, thereby supporting the diversification of funding sources and gradually increasing the private sector’s contribution.
Meanwhile, it is still too early to estimate the expected volume of issuances of asset-backed debt instruments, but that the opportunity appears promising as the regulatory framework is completed and the market matures, according to the official.
Al-Furaidi also expects that the real estate finance, finance companies, infrastructure, healthcare, education, and hospitality sectors will be among the sectors best positioned to benefit from these instruments, given that they possess assets and stable cash flows that can be securitized.
For his part, Al-Thaqfan explained that banks are among the primary beneficiaries of these regulations, given that they hold mortgage loan portfolios that represent a significant portion of their lending portfolios, enabling them to benefit from the new securitization-related regulations.
He indicated that the insurance sector could also benefit through the availability of a new investment product that could support the growth of insurance companies’ investments, alongside investment funds, which will have an additional avenue to diversify their portfolios with relatively lower-risk instruments.
Regarding the difference between asset-backed debt instruments and traditional sukuk and bonds, Al-Furaidi explained that the fundamental difference is that the valuation of asset-backed debt instruments depends to a greater extent on the quality of the underlying assets, cash flows, and the issuance structure, whereas the valuation of traditional bonds depends more heavily on the issuer’s creditworthiness.
He highlighted that these instruments could help broaden the base of institutional investors, including insurance companies, the General Organization for Social Insurance (GOSI), asset managers, and foreign investors, thereby enhancing market depth and increasing its attractiveness to institutional investors.
Al-Furaidi further stated that, in the initial stage, institutions may choose to hold these instruments until maturity. However, as the market matures and the number and variety of issuances increase, the liquidity of the secondary market is expected to improve gradually, thereby enhancing pricing efficiency.
Meanwhile, Al-Thaqfan emphasized that the regulations previously introduced by CMA, together with the current regulatory changes, are expected to lead to an inflow of new investments, thereby increasing the liquidity of debt instruments and enhancing the long-term sustainability of the market.
Saudi Arabia’s sukuk and debt instruments market has witnessed continued growth over the past year, reaching SAR 859.45 billion by the end of April 2026, compared to SAR 798.62 billion in May 2025, an increase of SAR 60.83 billion, or 7.62%.
The market’s size relative to GDP increased to 17.95% last April, compared to 17.06% in May 2025, backed by continued government issuances, increased activity by banks and financial institutions, and growth in private placements.
This growth coincided with the Saudi Exchange’s (Tadawul) release of draft amendments to its market rules aimed at developing the Sukuk/Bonds Market by establishing a regulatory framework for listing asset-backed debt instruments, paving the way for new financing instruments, while enhancing market depth and improving disclosure and transparency.
Key Market Indicators
Index
April 2026 Reading
Total market size
SAR 859.45 bln
Growth since May 2025
SAR 60.83 bln
Growth rate
7.62%
Market-to-GDP ratio
17.95%
Listed market
SAR 744.18 bln
Unlisted market
SAR 115.27 bln
Key Proposed Amendments
The proposed amendments focus on preparing the regulatory environment for listing asset-backed debt instruments by introducing new definitions, establishing disclosure requirements, and regulating the responsibilities of issuance parties, thereby enhancing the clarity of the regulatory framework and strengthening investor protection.
Proposed Amendment
Expected Impact
Establishing a framework for listing asset-backed debt instruments
Expands the range of debt instruments available in the market
Introducing definitions such as originator, trustee, and principal obligor
Improves clarity of roles and responsibilities
Creating a separate appendix for listing asset-backed debt instruments
Regulates listing and disclosure requirements
Enhancing disclosure requirements
Improves transparency and investor protection
Regulating the responsibilities of issuance parties
Strengthens governance and reduces operational risks
Market Structure
The listed market accounted for the largest share of the total Sukuk and debt instruments market, with a value of SAR 744.18 billion at the end of April 2026, or 86.59% of the total market, while the unlisted market stood at SAR 115.27 billion, representing 13.41%.
Market Structure
Item
Value (SAR bln)
Share
Listed market
744.18
86.59%
Unlisted market
115.27
13.41%
Total
859.45
100.00%
Government Issuances Dominance
Listed government Sukuk and bonds totaled SAR 724.97 billion, or 97.42% of the listed market in April 2026, compared to SAR 19.21 billion for corporate Sukuk and bonds, accounting for 2.58%.
Distribution of Listed Sukuk and Bonds
Category
Value (SAR bln)
Share
Government
724.97
97.42%
Corporate
19.21
2.58%
Total
744.18
100%
Ownership of Listed Sukuk and Bonds Is Concentrated Among Corporates
The total value of ownership of listed sukuk and bonds rose to SAR 730.5 billion by the end of Q1 2026, compared to SAR 642 billion in Q1 2025, an increase of 13.8%.
Ownership by Investor Type by End of Q1 2026)
Category
Number of Holders
Ownership Value (SAR bln)
Corporates
135
565.05
Government and quasi-government entities
35
144.82
Retail
52052
11.30
Funds
59
9.30
Total
52281
730.47
The ownership distribution reflects the broadening investor base in the market. While individuals account for the largest number of holders, the largest ownership values remain concentrated among companies and government and quasi-government entities, confirming that the market remains predominantly institutional in terms of ownership value.
Private Placements Drive Growth in the Debt Market
Private placements continued to strengthen their presence in the debt market, with the number of unlisted private placements increasing to 125 by the end of April 2026, a growth of 56.25% compared to 80 a year earlier. This reflected companies’ and financial institutions’ increasing reliance on private placements, while public corporate offerings remain relatively limited.
Public and Private Offerings in April 2026
Offering Type
Category
Number of Offerings
Public listed offerings
Government sukuk and bonds
55
Public listed offerings
Government sukuk and bonds
9
Private placements
Corporate sukuk and bonds
125
This indicated that the listed market continues to be driven by government issuances, while the private sector’s growth momentum is concentrated in unlisted private placements.
Banks Led Private-Sector Issuances
Banks and financial institutions led private-sector debt issuances, with eight issuers completing 25 offerings during the first quarter of 2026, compared to eight non-financial companies completing 11 offerings. This reflects banks’ continued use of debt instruments, whether to support capital or diversify funding sources.
Issuers and Offerings by Entity Type in Q1 2026
Category
Number of Issuers
Number of Offerings
Government Entities
1
6
Banks and financial institutions
8
25
Non-financial companies
8
11
February Saw Highest Value in 12 Months
Trading activity in the listed market fluctuated during the 12 months ended April 2026. February 2026 recorded the highest trading value at SAR 3.6 billion, while August 2025 recorded the lowest at SAR 427.4 million.
Trading value reached SAR 1.17 billion in April 2026, compared to SAR 525 million in the previous month, reflecting a month-on-month improvement despite continued volatility in trading activity.
Month
Trading Value (SAR bln)
May 2025
3.04
June 2025
3.43
July 2025
0.84
August 2025
0.43
Sept. 2025
0.51
October 2025
0.82
Nov. 2025
2.65
Dec. 2025
0.72
January 2026
2.06
Feb. 2026
3.60
March 2026
0.52
April 2026
1.17
What Do the Amendments Mean for the Market?
Saad Al-Thaqfan, economic analyst and board member of the Saudi Economic Association, said that the Financial Sector Development Program, including the capital market, has recently contributed to introducing legislation and regulations for new products needed by the economy and investors, including securitization.
Regulating asset-backed debt instruments is set to boost the liquidity of debt instruments in the capital market and attract new domestic and foreign investments, he added.
The analyst also pointed out that the existence of bank assets that are suitable for securitization, particularly mortgage-backed loans, which account for around 30% of total loans, could help attract new investors and reduce the cost of these loans, given the availability of a mechanism through which they can be sold or restructured.
For his part, Saad Al-Furaidi, Acting CEO of Dome Capital Financial Co., said that the proposed amendments related to asset-backed debt instruments represent an important step toward strengthening the regulatory framework for this type of instrument and expanding financing options available to the private sector.
He told Argaam that these proposed amendments would enhance the depth and efficiency of the Saudi debt market and improve the financing efficiency of productive assets, in line with the objectives of developing the capital market and Saudi Vision 2030.
“Moreover, the proposed amendments will help diversify the investment instruments available in the market, while also opening additional financing channels for companies that own assets or have stable cash flows,” Al-Furaidi stated.
He noted that securitization provides companies with an additional financing channel and also helps unlock liquidity tied to assets and redeploy it into financing new projects and investments, thereby supporting the diversification of funding sources and gradually increasing the private sector’s contribution.
Meanwhile, it is still too early to estimate the expected volume of issuances of asset-backed debt instruments, but that the opportunity appears promising as the regulatory framework is completed and the market matures, according to the official.
Al-Furaidi also expects that the real estate finance, finance companies, infrastructure, healthcare, education, and hospitality sectors will be among the sectors best positioned to benefit from these instruments, given that they possess assets and stable cash flows that can be securitized.
For his part, Al-Thaqfan explained that banks are among the primary beneficiaries of these regulations, given that they hold mortgage loan portfolios that represent a significant portion of their lending portfolios, enabling them to benefit from the new securitization-related regulations.
He indicated that the insurance sector could also benefit through the availability of a new investment product that could support the growth of insurance companies’ investments, alongside investment funds, which will have an additional avenue to diversify their portfolios with relatively lower-risk instruments.
Regarding the difference between asset-backed debt instruments and traditional sukuk and bonds, Al-Furaidi explained that the fundamental difference is that the valuation of asset-backed debt instruments depends to a greater extent on the quality of the underlying assets, cash flows, and the issuance structure, whereas the valuation of traditional bonds depends more heavily on the issuer’s creditworthiness.
He highlighted that these instruments could help broaden the base of institutional investors, including insurance companies, the General Organization for Social Insurance (GOSI), asset managers, and foreign investors, thereby enhancing market depth and increasing its attractiveness to institutional investors.
Al-Furaidi further stated that, in the initial stage, institutions may choose to hold these instruments until maturity. However, as the market matures and the number and variety of issuances increase, the liquidity of the secondary market is expected to improve gradually, thereby enhancing pricing efficiency.
Meanwhile, Al-Thaqfan emphasized that the regulations previously introduced by CMA, together with the current regulatory changes, are expected to lead to an inflow of new investments, thereby increasing the liquidity of debt instruments and enhancing the long-term sustainability of the market.
