RIYADH: Saudi Arabia’s debt capital market is expected to reach $600 billion in outstanding issuance by the end of 2026, cementing its position as the largest US dollar debt and sukuk issuer among emerging markets.
In a report published this week, Fitch Ratings said outstanding Saudi debt surpassed $520 billion in 2025, an annual increase of 21 percent, with sukuk — Shariah-compliant financial instruments — accounting for roughly 62 percent of the total.
The steady momentum in Saudi Arabia’s sukuk market highlights the broader expansion of the Kingdom’s debt markets, as domestic and international investors seek diversification and stable returns.
Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings, said: “Driven by cross-sector financing needs, fiscal deficits, regulatory initiatives, and expected lower oil prices and interest rates, Saudi Arabia’s DCM is likely to reach $600 billion outstanding in 2026.”
He added: “Almost all Fitch-rated Saudi sukuk are investment grade, with issuers on Stable Outlooks and no defaults. Following reforms, foreign investors now contribute more than 10 percent of the government’s outstanding direct domestic issuance in primary local markets at end-2025.”
