Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth entity, has launched a new round of sukuk issuance, inviting bids for benchmark-sized, dollar-denominated Islamic bonds with a 7-year maturity.

According to a document from one of the lead arranging banks, initial pricing guidance for the sukuk has been set at roughly 145 basis points over US Treasuries — a level that aligns with current appetite for regional issuances with sovereign backing.

This move by the PIF, which manages an estimated $925 billion in assets, signals renewed momentum among Gulf issuers.

According to recent reports by Reuters, several regional players are gearing up for fresh bond offerings despite headwinds in global debt markets — notably volatility stemming from trade tensions tied to policies initiated during Donald Trump’s presidency.

The sukuk issuance not only provides the PIF with diversified capital-raising channels but also serves as a strategic play to bolster funding for long-term investment goals under Vision 2030, Saudi Arabia’s broader economic transformation initiative.

The sukuk is expected to garner strong interest from both Islamic finance investors and global bondholders seeking high-grade exposure in the GCC.