Saudi Arabia’s outstanding debt capital market will see further growth after an 18.4 percent annual increase in the third quarter of 2023, according to research by Fitch Ratings. The agency said the total sector size hit $358.8 billion, with 62 percent as sukuk and the rest in bonds. The Kingdom’s debt capital market growth is expected to be supported by the diversification of funding and the development of capital markets in Saudi Arabia. Bashar Al-Natoor, global head of Islamic finance at Fitch, said “ambitious giga-projects and capital market development initiatives” were also fueling the sector’s expansion. In a press note, Fitch said the corporate funding culture in Saudi Arabia is still geared mostly towards bank financing, but this is gradually changing.—AN
