Saudi Arabia to issue domestic ‘sukuk’ Islamic bonds this month: Media reports

The Saudi Arabia government is expected to tap both the local and international bond markets this year, depending on the level of demand and the pricing it can obtain

Saudi Arabia will issue a local currency sukuk, or Islamic bond, this month, Saudi finance minister Mohammed al-Jadaan told Al Arabiya News on the sidelines of the G20 summit in Hamburg.

Saudi Arabia issued its first international bond of $17.5 billion last year and a debut international sukuk of $9 billion in April as it seeks to plug a budget deficit caused by lower oil prices. (Reuters Representative Photo)

The government is expected to tap both the local and international bond markets this year, depending on the level of demand and the pricing it can obtain, al-Jadaan said in May.

Saudi Arabia issued its first international bond of $17.5 billion last year and a debut international sukuk of $9 billion in April as it seeks to plug a budget deficit caused by lower oil prices.

The minister said in May that the state’s budget deficit would be funded mainly through international and local debt, while drawing down the government’s reserves would be a last resort.