Debt Capital and Sukuk

Debt Capital and Sukuk

As Saudi Arabia diversifies its economy in accordance with Vision 2030, the Saudi Stock Exchange and the CMA are driving many relevant plans to raise capital from new sources. In its published strategy, the CMA notes that this will require expansion of the Saudi capital markets, including developing the market for debt instruments and sukuk (Islamic bonds). There have been several initiatives with these goals in mind, including:

  • Permitting, as part of the Qualified Foreign Investor regime, direct foreign investment in Saudi-listed debt securities;
  • The government’s sovereign sukuk programme, both for international and local investors;
  • Updated regulations for the offering of securities and continuing obligations for listed issuers, with detailed requirements for offers of debt securities; and
  • Updated Companies Regulations issued by the Ministry of Commerce and Investment with new provisions on the procedures for issuance of debt by joint stock companies.