The December issuance is divided into four tranches:
- The first tranche, amounting to 5.585 billion riyals, matures in 2027.
- The second tranche, totaling 3.907 billion riyals, is set to mature in 2029.
- The third tranche, valued at 706 million riyals, will mature in 2031.
- The fourth tranche, worth 1.4 billion riyals, has a maturity date in 2034.
This substantial increase in sukuk issuance aligns with Saudi Arabia's broader strategy to diversify its economy and manage its fiscal deficit. Earlier this year, the kingdom announced plans to address a projected $21 billion fiscal shortfall by issuing dollar-denominated bonds. In May 2024, reports indicated that Saudi Arabia was planning to sell dollar-denominated bonds to plug the expected deficit, with banks like Citigroup, Goldman Sachs, and BNP Paribas coordinating the sale.
In addition to government issuances, Saudi Aramco, the state-owned oil giant, has also been active in the sukuk market. In September 2024, Aramco planned to raise up to $3 billion through five and ten-year U.S. dollar-denominated sukuk as part of its efforts to diversify funding sources.