The Kingdom of Saudi Arabia emerged as the leading issuer in GCC bond market by raising $37 billion (Dh135.8 billion) through 44 issuances during the first half of 2024.
As per the Markaz GCC Bonds and Sukuk Market report the GCC primary issuances came to $75.5 billion (Dh277 billion) during this period, denoting a critical 38 percent climb from $54.8 billion (Dh201 billion) in the principal half of 2023.
By and large, the GCC primary issuances reached $75.5 billion (Dh277 billion) during this period, marking a significant 38 per cent rise from $54.8 billion (Dh201 billion) in the first half of 2023.
Saudi Arabia’s Vision 2030 which aims to create a thriving economy that will includ several large-scale projects requiring substantial funding, is a key driver behind these issuances. Previously the Saudi banks used to reply on deposit growth, the magnitude of these projects surpasses their liquidity capacities.
Therefore, these banks are anticipated to seek additional deposits and tap into the international debt market to fulfil their financing requirements. Notably, these projects benefit from substantial support from the central government and affiliated entities.
Moving forward, the Public Investment Fund (PIF) has outlined plans to deploy $70 billion (Dh257 billion) annually post-2025 and is exploring various fundraising avenues of its own.
Inspite of these aggressive monetary investments required Saudi banks have healthy balance sheets and may not bear the entire financial burden of Vision 2030 independently.
