RIYADH, Jan 24 (Arab News): Saudi Arabia's funding diversification plans and market development initiatives are bearing fruit, with the Kingdom's debt capital market expected to witness continued growth in 2024.
According to Fitch, the Kingdom's outstanding DCM is growing 14.5 per cent year on year, amounting to $360 billion by the end of 2023.
The agency expects this reach $500 billion by the end of this year.
The increased expansion in the Kingdom's DCM is attributed to the government issuing sukuk both locally and internationally, payments of maturing debts, and opportunistic tapping into the market.
Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings, said: "Saudi Fitch-rated outstanding sukuk totaled $50 billion at the end of 2023, 97.3 per cent of which was investment-grade, and all sukuk issuers had stable outlooks. No sukuk defaulted in 2023."
He added: "We expect Saudi DCM to continue developing in line with the Saudi Vision 2030, supported by the country's funding diversification plans and capital market development initiatives".
Saudi Arabia debt issuance to see continued growth in 2024: Fitch
FE Team | Published: January 24, 2024 23:14:59
Saudi Arabia debt issuance to see continued growth in 2024: Fitch
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