Economic Brief – Sukuk Market Update -November 2020

Saudi Arabia is quickly becoming a leader in the growth of the global sukuk market as the government has pivoted to deficit spending to fund its expenditures and flagship Vision 2030 programs. Sukuk issuances have accelerated in recent years across the Middle East and Asia and have been further fueled by the economic shocks of 2020. Demand for excess liquidity, compounded by the unanticipated shocks of the global pandemic and persistently low oil prices, led Saudi Arabia to surpass its previous sukuk issuances high of SAR119.3 billion ($31.8 billion) set in 2017 with SAR122.6 billion ($32.7 billion) of sukuk issued through Q3 2020. Across sovereign and corporate issuances, Saudi Arabia now represents 25 percent of the outstanding sukuk value globally.