Saudi Arabia raises $1.34bn through July sukuk issuance

Sukuk are Shariah-compliant financial instruments that offer investors partial ownership in an issuer’s underlying assets, making them a popular alternative to conventional bonds. File
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Updated 15 July 2025
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Saudi Arabia raises $1.34bn through July sukuk issuance

RIYADH: Saudi Arabia’s National Debt Management Center raised SR5.02 billion ($1.34 billion) through its riyal-denominated sukuk issuance for July, marking a sharp 113.6 percent increase compared to the previous month.

In June, the Kingdom issued sukuk worth SR2.35 billion, while May and April saw issuances of SR4.08 billion and SR3.71 billion, respectively.

Sukuk are Shariah-compliant financial instruments that offer investors partial ownership in an issuer’s underlying assets, making them a popular alternative to conventional bonds.

According to NDMC, the July issuance was divided into four tranches. The first tranche, valued at SR776 million, will mature in 2029. The second, worth SR1.34 billion, is set to mature in 2032, followed by a third tranche of SR823 million due in 2036. The largest tranche, totaling SR2.08 billion, will mature in 2039.

Saudi Arabia’s debt market has witnessed robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of rising interest rates.

In April, Kuwait Financial Center, also known as Markaz, reported that Saudi Arabia led the Gulf Cooperation Council in primary debt issuances during the first quarter of the year. The Kingdom raised $31.01 billion from 41 offerings, accounting for over 60 percent of total issuances across the region.

Credit rating agency S&P Global noted in April that Saudi Arabia’s expanding non-oil sector and steady sukuk issuance volumes are likely to support the growth of the global Islamic finance industry.

The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings contributing up to $80 billion, assuming market conditions remain stable.

Echoing that outlook, a report by Kamco Invest published in December said Saudi Arabia is expected to account for the largest share of bond maturities in the GCC between 2025 and 2029, with $168 billion set to mature during the period.

Earlier this month, S&P Global reiterated its positive view, stating that the global sukuk market is on track to maintain its momentum in 2025, with foreign currency-denominated issuances projected to reach between $70 billion and $80 billion.


IMF raises Saudi Arabia’s 2025 growth forecast to 3.6%

Updated 29 July 2025
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IMF raises Saudi Arabia’s 2025 growth forecast to 3.6%

RIYADH: The International Monetary Fund has raised its 2025 economic growth forecast for Saudi Arabia to 3.6 percent, up from the 3 percent projected in April, citing stronger non-oil sector performance and the expected unwinding of OPEC+ production cuts.

In its latest World Economic Outlook update, the IMF said the revision reflects a stronger-than-anticipated expansion of the non-oil economy. The Kingdom’s growth is now set to outpace the global average of 3 percent next year and surpass that of most neighboring Gulf states.

Looking ahead, the IMF expects Saudi Arabia’s growth to rise further to 3.9 percent in 2026 before stabilizing around 3.5 percent over the medium term.

Non-oil gross domestic product is projected to grow 3.4 percent in 2025, slightly below the 4.2 percent recorded in 2024. However, medium-term prospects remain strong, with non-oil growth forecast to approach 4 percent by 2027 before settling at 3.5 percent by the end of the decade.

Labor market conditions have also improved, with the unemployment rate among Saudi nationals falling to a record low of 7 percent in 2024, the IMF noted.

Inflation remains contained, with the headline rate expected to stay near 2 percent, supported by the Kingdom’s dollar peg and subsidy framework.

On fiscal policy, the IMF said higher government spending in 2025 — resulting in a deficit above the initial budget — was justified and that additional spending cuts in response to lower oil prices could be counterproductive. Such cuts would risk making fiscal policy procyclical and weighing on growth, the report stated.

The IMF also called for a gradual fiscal consolidation over the medium term. It recommended raising non-oil revenues, phasing out energy subsidies, and streamlining public expenditure.

Despite facing some pressures from strong credit growth and funding costs, the Saudi banking sector remains resilient, the IMF said. The Saudi Central Bank has introduced a countercyclical capital buffer and is continuing to strengthen regulatory frameworks.

The report emphasized the importance of sustaining structural reforms to support non-oil growth and economic diversification. It urged continued progress on governance, human capital development, financial access, digitalization, and capital market deepening — regardless of oil price trends.


GCC inflation remains stable through Q2 despite geopolitical instability: Kamco Invest

Updated 29 July 2025
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GCC inflation remains stable through Q2 despite geopolitical instability: Kamco Invest

  • Dubai recorded a monthly inflation rate of 2.4% in June
  • Saudi Arabia and Kuwait registered inflation rates of 2.3%

RIYADH: Gulf Cooperation Council inflation rates remained stable throughout the second quarter of 2025 despite heightened geopolitical instability, a new report showed.

According to the latest analysis by Kuwait-based non-banking firm Kamco Invest, Dubai recorded a monthly inflation rate of 2.4 percent in June, unchanged from May, followed by Saudi Arabia and Kuwait, both registering inflation rates of 2.3 percent in June.

This aligns with recently released data from the Statistical Center for the GCC, which shows that the region’s average inflation rate fell to 1.7 percent in 2024, down from 2.2 percent in 2023.

It also supports the fact that the GCC economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds, according to a recent economic update by the Institute of Chartered Accountants in England and Wales prepared with Oxford Economics.

“The war in the Middle East affected crude oil prices that surged to almost $79 per barrel. But quietly receded in the subsequent weeks as OPEC+ accelerated the output hikes aiming to unwind the full 2.2 mb/d by September-2025,” Kamco said.

It added: “Brent crude oil is trading at $68.4 per barrel, 8.3 percent lower than its level at the end of 2024. The quarter also witnessed the start of the global tariff war that affected financial markets and expectations for future economic growth.”

The Kamco report also said that the conflict’s limited impact on regional inflation was largely because increases in commodity and shipping costs occurred gradually over time, rather than through sudden spikes.

The ongoing application of prudent economic policies across the GCC has also played a key role in controlling inflation, keeping rates well below those in other parts of the Middle East and the world.

Inflationary pressures in the US intensified in June, with the annual rate climbing to 2.7 percent, the highest in five months, up from 2.4 percent in May. The uptick was primarily attributed to rising prices in core goods, which hit their highest level in two years.

“These increases are largely attributed to new tariffs affecting household furnishings, appliances, electronics, apparel, and toys. Meanwhile, the US consumer price index registered a m-o-m (month-on-month) growth of 0.3 percent in June-2025. Excluding the typically volatile food and energy sectors, US core inflation increased by 0.2 percent m-o-m, with the annualized core rate rising to 2.9 percent in June,” Kamco said.

“It is important to highlight that prior to this uptick, US inflation had been on a generally downward trajectory. Similarly, inflation in the Eurozone rose in June-2025, reaching 2.0 percent, down from 2.5 percent in June-2024 but slightly higher than May-2025’s rate of 1.9 percent. The Services sector experienced the highest y-o-y growth at 3.3 percent, followed by the Food, Alcohol, and Tobacco category, which rose by 3.1 percent,” it added.

Earlier in July, Kamco Invest said that foreign investors sharply increased their exposure to Gulf stock markets in the second quarter of 2025, with net inflows surging 50 percent compared to the previous three months to reach $4.2 billion. 

The momentum extended the streak of net foreign inflows into GCC equities to six consecutive quarters, with total net purchases in the first half of 2025 rising 39.8 percent year on year to $7 billion. 


Closing Bell: TASI ends in red at 10,823 

Updated 29 July 2025
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Closing Bell: TASI ends in red at 10,823 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed Tuesday’s trading session at 10,823.91, marking a decline of 61.41 points, or 0.56 percent. 

The total trading turnover of the benchmark index reached SR4.41 billion ($1.17 billion), with 52 stocks advancing and 199 retreating. 

The MSCI Tadawul Index also declined, dropping 5.36 points, or 0.38 percent, to close at 1,394.05.  

The Kingdom’s parallel market Nomu fell by 55.39 points, or 0.21 percent, closing at 26,725.89. A total of 22 stocks advanced, while 51 declined. 

BAAN Holding Group Co. was the session’s top performer, with its share price rising 8.70 percent to close at SR2.50. 

Other notable gainers included Amlak International Finance Co., which rose 6.08 percent to SR12.04, and National Metal Manufacturing and Casting Co., up 2.28 percent to SR17.50.     

Amlak’s gains followed the release of its interim financial results for the period ending June 30, showing a 147.6 percent year-on-year increase in net profit to SR20.3 million. 

Mobile Telecommunication Co. Saudi Arabia also recorded gains, with its share price increasing 1.96 percent to SR10.43.  

On the other end, Tourism Enterprise Co. recorded the steepest decline, with its shares falling 10 percent to SR0.99. 

Arabian Drilling Co. followed with a 9.98 percent drop to SR77.55 after announcing a 65 percent year-on-year decline in net profit to SR7 million for the second quarter ended June 30. 

The company stated on Tadawul that the profit decline was primarily due to a fall in rig utilization — down to 79 percent from 91 percent in the same period last year — and higher finance costs stemming from increased gross debt. This was partially offset by a one-off asset impairment recorded in the second quarter of 2024.  

United Carton Industries Co. also posted a notable decline of 7.48 percent, closing at SR31.42. 

Jamjoom Pharmaceuticals Factory Co. and Gulf General Cooperative Insurance Co. posted losses of 4.38 percent and 4.16 percent, closing at SR161.40 and SR5.07, respectively. 


Dubai International Airport sets H1 passenger record with 46m travelers

Updated 29 July 2025
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Dubai International Airport sets H1 passenger record with 46m travelers

  • Average monthly traffic during the first half stood at 7.7 million passengers
  • DXB handled 222,000 flights and processed 41.8 million bags in the first half

RIYADH: Dubai International Airport handled 46 million passengers in the first half of 2025, marking its busiest six-month period on record despite regional airspace disruptions and global headwinds. 

In a press release, operator Dubai Airports said the 2.3 percent year-on-year increase underscores the continued strength of the emirate’s aviation sector and the terminal’s operational resilience. 

The growth came despite temporary airspace restrictions in May and June, which forced several Gulf carriers to reroute flights and adjust schedules due to heightened military activity and no-fly zone declarations in parts of the Middle East. 

Paul Griffiths, CEO of Dubai Airports, said: “DXB’s continued growth through a period of regional challenges highlights the strength of Dubai and the UAE, the agility of our operations, and the commitment of our airport community.” 

In the second quarter alone, the airport handled 22.5 million passengers, a 3.1 percent increase over the same period last year. April was the busiest month of the quarter and the most active April on record, with 8 million travelers. 

Average monthly traffic during the first half stood at 7.7 million passengers, with daily volumes averaging 254,000. January was the busiest month, setting a new monthly record with 8.5 million passengers. 

DXB also handled 222,000 flights and processed 41.8 million bags in the first half, with 91 percent delivered within 45 minutes of arrival. The mishandled baggage rate stood at 2 bags per 1,000 passengers, well below the industry average of 6.3, the release added. 

“As we enter the second half of the year, travel activity is expected to accelerate, beginning with the late-summer peak and leading into a winter season filled with high-profile events across entertainment, sport, and business,” said Griffiths. 

He said the Dubai Airshow 2025 will be a standout event, poised to break previous records and highlight the bold vision driving the future of aviation and aerospace. 

“Based on our performance to date and a positive outlook, we expect the annual traffic to reach 96 million this year, bringing us closer to the symbolic 100 million milestone,” added Griffiths. 

India remained DXB’s top market in the first half of the year, with 5.9 million passengers, followed by Saudi Arabia with 3.6 million. The UK accounted for 3 million passengers, while Pakistan and the US recorded 2.1 million and 1.6 million, respectively. 

London was the busiest city destination with 1.8 million passengers, followed by Riyadh, Mumbai, Jeddah, New Delhi, and Istanbul. 

DXB also processed more than 1 million tonnes of cargo during the first half of 2025, a 0.1 percent increase compared with the same period last year. The airport is connected to more than 269 destinations in over 107 countries and is served by 92 international carriers. 


Saudi Arabia tops MENA private equity activity in H1: MAGNiTT 

Updated 29 July 2025
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Saudi Arabia tops MENA private equity activity in H1: MAGNiTT 

RIYADH: Saudi Arabia emerged as the most active private equity market in the Middle East and North Africa during the first half of 2025, accounting for 45 percent of all recorded transactions.

According to MAGNiTT’s MENA Private Equity Report, the Kingdom posted 13 deals, an 8 percent increase year on year, outpacing the UAE, which recorded 12 transactions, representing a 25 percent annual decline. 

Combined, the two markets comprised 86 percent of total regional PE deal activity, highlighting their growing dominance in the MENA investment landscape. 

Overall, the region continued to see a contraction in transaction volumes, with total activity dropping by 38 percent year on year to account for just 29 percent, marking the third consecutive half-year decline.

Disclosed deal value dropped only 11 percent from the first half of the year 2024 to $2.88 billion, as capital shifted toward larger, high-conviction investments. 

“The MENA region’s PE recalibration is being led by scale-ready SMEs (small and medium-sized enterprises) and high-conviction strategies, not withdrawal,” said Farah El-Nahlawi, research department manager at MAGNiTT, adding: “The growing dominance of $100M+ deals signals a maturing landscape ready to absorb larger pools of capital.” 

The Kingdom’s PE growth aligns with its venture capital growth. According to a separate report by MAGNiTT, Saudi Arabia led MENA VE activity in early 2025, raising $860 million — a 116 percent year-on-year increase — driven by sovereign backing and rising foreign investor interest. 

The report recorded 114 VC deals in the first half of the year, up 31 percent from the same period in 2024, highlighting the broader momentum across the nation’s investment ecosystem and its growing appeal as a capital destination for both private equity and venture capital. 

Investor activity varied notably among key markets. In Saudi Arabia, 12 out of 13 transactions involved local investors, highlighting strong domestic momentum.

In contrast, two-thirds of the UAE’s deals — eight out of 12 — were led by international investors, reaffirming the UAE’s role as a regional gateway for cross-border capital. 

The concentration of capital into larger deals was a defining trend. Transactions in the $500 million to $1 billion range rose to 29 percent of the total in the first half of 2025, while $1 billion-plus deals accounted for 14 percent — both the highest shares in five years. 

At the same time, smaller deals under $50 million dropped to just 14 percent, the lowest level on record. 

On a value basis, transactions in the $500 million to $1 billion bracket made up 42 percent of disclosed capital, overtaking the $1 billion-plus segment, which declined from 45 percent in 2024 to 36 percent in the first half of 2025. 

This evolution aligns with broader global investment patterns. According to S&P Global, international PE deal value rose 18.7 percent year on year in the first half of 2025 despite a 6 percent decrease in volume, suggesting an industry-wide pivot toward fewer but more substantial transactions. 

“Despite global macro uncertainty, the GCC, particularly Saudi Arabia and the UAE, continues to demonstrate structural strength and investor confidence,” El Nahlawi said, adding: “Backed by sovereign support, maturing SMEs, and a favorable regulatory environment, the region is poised to anchor future PE activity.” 

Beyond the Kingdom and the UAE, Egypt, Jordan, Morocco, and Qatar each recorded a single transaction, jointly accounting for the remaining 14 percent of regional activity. Egypt experienced the sharpest drop, with dealings down 89 percent year on year.