https://arab.news/m47fn
RIYADH: The Saudi Ministry of Finance and the National Debt Management Center have signed an agreement appointing France鈥檚 Societe Generale as a primary dealer for the Kingdom鈥檚 local debt instruments, according to an official statement.
Societe Generale will join five other international institutions already operating as primary dealers, namely BNP Paribas, Citigroup, and Goldman Sachs, as well as J.P. Morgan, and Standard Chartered Bank.
As part of ongoing efforts to deepen and diversify its domestic debt market under Vision 2030, the Ministry of Finance and the NDMC have taken new steps to strengthen the role of international and local institutions in supporting sukuk and bond issuance.
鈥淭his agreement fits within the Financial Sector Development Program strategy as a step toward achieving the objectives of Saudi Vision 2030 by strengthening financial sector institutions and advancing the financial market,鈥� NDMC stated.
The NDMC stated that the deal reaffirms its role in enhancing access to local debt markets by diversifying the investor base. This approach aims to ensure sustainable access to the secondary market and support its growth.
鈥淚t is noteworthy that applications for subscription in the primary market for the government's local debt instruments are submitted to the NDMC through the appointed primary dealers on a scheduled monthly basis where these dealers receive the applications submitted by investors,鈥� the statement said.
The French bank will also be added to the list of 10 local institutions participating in the program, including Saudi National Bank, Saudi Awwal Bank, and AlJazira Bank, as well as Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Co., and Saudi Fransi Capital.
The Kingdom鈥檚 sukuk market has witnessed significant growth in recent years, underpinned by its strategic role in the Kingdom鈥檚 Vision 2030 economic diversification plans. In the first quarter of 2025, corporate bond and sukuk issuance more than doubled to $37 billion, up from $15.5 billion in the same period of 2020.
海角直播 accounted for more than 60 percent of all sukuk and bond issuance across the Gulf Cooperation Council during that period, according to the Kuwait Financial Center, also known as Markaz.
The NDMC surpassed the $1鈥痓illion threshold with its May sukuk issuance, raising SR4.08鈥痓illion ($1.08鈥痓illion)鈥攁 9.09鈥痯ercent increase from April and a 54.5鈥痯ercent rise compared to March鈥檚 SR2.64鈥痓illion.
In June, the NDMC raised SR2.355鈥痓illion, marking a decline from May but demonstrating typical monthly funding fluctuations.
The July issuance rebounded sharply to SR5.02鈥痓illion, an increase of 113.6鈥痯ercent month on month. That issuance was split into tranches maturing in 2029, 2032, 2036, and 2039.
According to S&P Global, the Kingdom鈥檚 domestic debt markets are expected to expand further amid Vision 2030 reforms, with sovereign and corporate issuance at 20.7鈥痯ercent of gross domestic product and corporate debt alone rising from 1.9鈥痯ercent in 2020 to 3.4鈥� percent in early 2025.