Saudi Arabia has closed on its riyal-denominated sukuk issuance for March 2025, with a total allocation of SAR 2.64 billion ($703.2 million).

This month’s local offering brings the total sukuk allocation this year so far to SAR 9.435 billion. Last February’s issuance stood at SAR 3.071 billion, while January’s offering was pegged at SAR 3.724 billion.

The latest offering under the Saudi Arabian Government SAR-denominated Sukuk Program was split into four tranches, with the first, amounting to SAR 364 million, set to mature in 2027.

The second tranche, which has a size of SAR 316 million, matures in 2029, while the third (SAR 1.46 billion) and fourth (SAR 500 million) will mature in 2032 and 2039, respectively, according to the National Debt Management Centre (NMDC).

The sukuk market is forecast to stay upbeat this year, with global issuances likely to be between $190 billion and $200 billion, according to S&P.

The ratings agency noted a 29% jump in foreign-currency issuance to $72.7 billion as of December 2024, thanks largely to issuers from GCC countries led by Saudi Arabia, as well as Malaysia and Indonesia.