Saudi Arabia has overtaken Malaysia as the world's largest sukuk market, with $370bn in outstanding Islamic bonds at the end of 2025, as the Kingdom increasingly turns to debt financing to fund government spending and corporate expansion.
#BehindTheNumbers: Saudi sukuk outstanding rose 18% to $370bn, surpassing Malaysia's $360bn. The Kingdom now accounts for roughly one-third of the $1.1tn global sukuk market.
#TheBigShift: Malaysia has long been the global benchmark for Islamic finance. Saudi Arabia's rise reflects the growing scale of its debt market as the government and companies seek funding for infrastructure, investment and economic diversification.
#WhyItMatters: Saudi corporate sukuk and debt offerings reached SR51bn in 2025, compared with SR34bn raised through equity offerings. Debt issuance is becoming an increasingly important financing channel, allowing companies to raise capital without diluting existing shareholders.
