Riyadh – Mubasher: Saudi Arabia is considering a sale of SAR-denominated sukuk to local institutions this year to help boost the local Islamic bond market, Bloomberg reported on Wednesday, citing three unnamed sources.
Apart from being the world’s largest oil exporter, the Kingdom is currently working on setting up a USD-denominated Islamic bond map in the global market, the sources who asked not to be named told Bloomberg.
The Saudi Ministry of Finance said that the bond issuance was among the options the Kingdom was considering to finance its budget deficit and bolster the local debt market, the news agency added.
It is projected that Saudi Arabia will post a budget deficit of SAR 198 billion ($53 billion) in 2017, representing around 7.7% of its gross domestic product (GDP).
The KSA raised $17.5 billion (SAR 65.6 billion) from a debut sale of international bonds in October 2016, “a record for an emerging market nation”, according to Bloomberg, which added that the Kingdom “also completed a syndicated loan in dollars as well as several bond sales to domestic institutions.”