Sukuk Capital holds 63% of fintech debt market

Abdulaziz Alsayyari, CEO of Sukuk Capital 

Sukuk Capital holds around a 63% share of the debt instruments market through fintech platforms in the Saudi market, said CEO Abdulaziz Alsayyari.

In an interview with Argaam during the Money20/20 conference, Alsayyari said the value of the sukuk programs offered by the company since its first issuance in May 2021 exceeded SAR 12.5 billion. More than 600 companies have benefited from the financing, while issuances executed under these programs amounted to around SAR 10 billion.

He added that the value of the outstanding portfolio stood at SAR 5.3 billion. The portfolio maintained growth rates of between 70% and 80% during most of the past periods, supported by the strength of the Saudi economy and growth in the debt instruments market, as well as the provision of suitable financing solutions for companies, particularly small and medium-sized enterprises (SMEs).

The CEO noted that the total amounts distributed to investors exceeded SAR 5 billion. He added that the default rate among companies stood at around 1.1%, with the data updated periodically on the company’s website as part of its transparency with investors.

Regarding the cost of financing compared with banks, Alsayyari said it was broadly comparable, noting that financing through the company could be cheaper than bank financing in some cases and more expensive in others, depending on the company’s credit profile.

He explained that the company’s financing covers sectors including industry, education, healthcare, contracting, trade, and real estate, among others. Sukuk provide companies with an additional source of financing for their operations and expansion.

Regarding plans to list Sukuk Capital on Tadawul, Alsayyari said there are currently no plans to do so, although the company may consider a listing in the future, without specifying a timeframe.