RIYADH: Saudi Arabia has completed its riyal-denominated sukuk issuance for June at SR4.4 billion ($1.17 billion), according to the National Debt Management Center. The Kingdom issued sukuk amounting to SR3.23 billion in May, while it was SR7.39 billion and SR4.4 billion in April and March respectively. NDMC said that the Shariah-compliant debt product for June was divided into three tranches. The first amounted to SR1.6 billion and the second to SR53 million for sukuk maturing in 2027. The third tranche amounted to SR2.76 billion for sukuk maturing in 2034. A report released by S&P Global in April said that sukuk issuance globally was expected to hover between the $160 billion to $170 billion mark in 2024, compared to $168.4 billion in 2023 and $179.4 billion in 2022. According to the US-based firm, the issuance of the debt product began on a strong footing in 2024, with Saudi Arabia becoming a key contributor to the performance. The credit-rating agency also noted that the sukuk market will continue to grow in the near term, driven by financing needs in core Islamic finance countries and the ongoing economic transformation programs in nations like the Kingdom. S&P Global said: “The market has started 2024 on a strong footing, with total issuance reaching $46.8 billion at March 31, 2024, compared with $38.2 billion at March 31, 2023. Saudi Arabia was a key contributor to this performance. “The drop in issuance volumes in 2023, which mainly resulted from tighter liquidity conditions in Saudi Arabia’s banking system and Indonesia’s lower fiscal deficit, was somewhat compensated (for) by an increase in foreign currency-denominated sukuk issuance.” An additional report released by Fitch Ratings in April echoed similar views and noted that global sukuk issuance was expected to grow in the coming months of this year. The organization noted that economic diversification efforts and the rapid development of the debt capital market in the Gulf Cooperation Council region would propel the growth of the sukuk market as 2024 progresses.