Saudi Arabia’s sovereign Sukuk: Looking to the future

Saudi Arabia has posted budget defi cits totaling more than US$260 billion since the 2014 crash in oil prices. The defi cit fi nancing took into account the best fi nancing options available, including borrowing from the local and international markets, as well as launching an offi cial sovereign Sukuk program. In this article, DR AHMED HASSAN AL-NAGGAR seeks to answer the following: (a) How long will sovereign Sukuk issuance continue at the same pace in Saudi Arabia? and (b) Was Saudi sovereign Sukuk issuance due to the need to fi nance the budget defi cit only? Therefore, with a successful reduction in defi cit, will the issuance volume decrease?

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