The Ministry of Finance announces that it has closed the July 2020 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program. The issuance size was set at SAR 1.000 billion.
The Sukuk issuances were divided into two tranches as follows:
The credit rating agency Moody's has updated the Kingdom of Saudi Arabia's credit opinion report at “Aa3" with a “stable" outlook. The agency highlighted that the Kingdom's credit profile is underpinned by its large and prosperous economy, supported by its vast hydrocarbon resources, improving institutional effectiveness, and a robust government balance sheet.
-Moody's noted that while the Kingdom remains exposed to cyclical declines in oil prices and longer-term risks, continued progress in economic and fiscal diversification will, over time, gradually reduce its reliance on hydrocarbons and exposure to developments in the oil market.
The first tranche has a size of SAR 452.2 million and a total tranche size of SAR 7.001 billion, matures in 2025.
- Furthermore, The Agency noted that the growth in the non-oil sector will remain supported by domestic demand and the ongoing implementation of large-scale projects. Despite lower oil prices, Saudi Arabia's diversification momentum has remained intact in 2025. The non-oil sector grew by an average of 4.5% year-on-year in the first two quarters of the year, led by the expansion of services sectors such as tourism, wholesale and retail trade and restaurants and hotels as well as mining (excluding petroleum) and manufacturing sectors.
The second tranche has a size of SAR 547.8 million, and a total tranche size of SAR 547.8 million, matures in 2027.
*Numbers are rounded to the nearest decimal.