Saudi banks issue nearly SAR 35B sukuk, bonds in 2026
TASI-listed banks have announced a series of sukuk and bond issuances since early 2026, including Additional Tier 1 (AT1) sukuk, as well as two social sukuk issuances by Al Rajhi Bank (Tier 1 and Tier 2) and Tier 1 bond issuance by Saudi National Bank (SNB).
According to an Argaam study, the value of Saudi riyal-denominated issuances ranged from SAR 1.46 billion to SAR 10 billion, while US dollar-denominated issuances ranged from $500 million to $1 billion. Annual yields on priced issuances ranged between 6.15% and 6.625%, with early redemption dates varying by issuance.
The total value of announced issuances to date reached nearly SAR 34.5 billion (or $9.20 billion). This comprised SAR-denominated issuances worth SAR 16.31 billion and $4.85 billion (or approximately SAR 18.19 billion), respectively.
|
TASI-listed Bank Issuances YTD |
||||
|
Bank |
Sukuk Type |
Value |
Annual Return |
Maturity/Redemption |
|
Riyad Bank |
Tier 1 |
SAR 10 bln |
6.50 % |
Permanent, recoverable after 5 years |
|
Al Rajhi Bank |
Social Tier 1 |
$1 bln |
6.15 % |
Permanent, recoverable after 5 years |
|
SNB |
Tier 1 |
$1 bln |
6.50 % |
Permanent, recoverable after 5.5 years |
|
Alinma Bank |
Tier 1 |
SAR 3 bln |
6.50 % |
Permanent, with redemption possibility. |
|
ANB |
Tier 1 |
$750 mln |
6.50 % |
Permanent, recoverable after 5 years |
|
Al Rajhi Bank |
Social Tier 2 |
$600 mln |
6.232 % |
10.5 years, may be redeemed after 5.25 years |
|
Bank AlJazira |
Tier 1 |
$500 mln |
6.50 % |
Permanent, may be recovered after 5 years |
|
Ba Bank Albilad |
Tier 1 |
$500 mln |
6.375 % |
Permanent, with early redemption possibility. |
|
Alinma Bank |
Tier 1 |
$500 mln |
6.625 % |
Permanent, may be recovered after 5.5 years |
|
SAIB |
Tier 1 |
SAR 1.85 bln |
6.50 % |
Permanent, with early redemption possibility. |
|
Bank AlJazira |
Tier 1 |
SAR 1.46 bln |
6.35 % |
Permanent, recoverable after 5 years |
|
Total Issuance Size |
|
SAR 34.50 bln ($9.20 bln) |
||
Riyad Bank led by sukuk issuances in 2026 with SAR 10 billion worth of sukuk, accounting for around 29% of the total.
Al Rajhi Bank ranked second with total issuances of nearly SAR 6 billion through two offerings — one worth $1 billion and the other $600 million — representing around 17.4% of the total. Alinma Bank came in third place with approximately SAR 4.88 billion across two issuances — a SAR 3 billion domestic offering and a $500 million international issuance — accounting for around 14.1%.
SNB ranked fourth with a bond issuance worth $1 billion and a market share of about 11%. It was followed by Bank AlJazira that came in with total issuances of about SAR 3.34 billion across two offerings, representing around 9.7% of the total. The remaining share was distributed among Arab National Bank (ANB), Bank Albilad and The Saudi Investment Bank (SAIB).
|
Banks’ Share in Sukuk Issuances (2026) |
|
|
Bank |
Share(%) |
|
Riyad Bank |
28.99 % |
|
Al Rajhi Bank |
17.39 % |
|
Alinma Bank |
14.13 % |
|
SNB |
10.87 % |
|
Bank AlJazira |
9.67 % |
|
ANB |
8.15 % |
|
Bank Albilad |
5.43 % |
|
SAIB |
5.36 % |
|
Total |
100.00% |
|
Definitions of Sukuk Types Cited in the Report |
|
|
Term |
Brief Definition Under Basel III |
|
Tier 1 |
Sukuk used to strengthen a bank’s core capital. They are typically perpetual, with an early redemption option subject to the terms of the issuance. |
|
Tier 2 |
Sukuk used to strengthen a bank’s supplementary capital. They have a specified maturity, with the possibility of early redemption subject to the terms of the issuance. |
|
Social Sukuk |
Debt instruments whose proceeds are used exclusively to finance or refinance eligible social projects that generate social benefits, whether new or existing projects, in whole or in part. |
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