Saudi PIF, UAE Firms Lead New Round of Bond Issuances

KSA, 22 April, 2025 : Gulf entities, including Saudi Arabia’s $925 billion Public Investment Fund (PIF), are preparing new bond issuances, unfazed by recent market instability tied to U.S. trade policy uncertainty.

According to sources, PIF plans to raise $1.5–$2 billion through a sukuk in the coming weeks, adding to the $11 billion it has already secured this year. The move comes amid pressure to bolster finances due to falling oil prices threatening state revenue.

Abu Dhabi Ports is also eyeing a $2 billion bond, while renewable energy firm Masdar plans a $1 billion green bond. Although plans are not final, they reflect continued activity despite increased borrowing costs.

“There is appetite,” said Zeina Rizk of Amwal Capital Partners, noting Mashreq’s recent $500 million sukuk as a positive signal.

Saudi’s Banque Saudi Fransi is expected to launch a bond this week, following Saudi National Bank’s $750 million dollar-bond issuance in Taiwan in March. Local banks continue to be key financiers for mega-projects like NEOM and Qiddiya, requiring massive funding.

Fitch projects Saudi banking sector credit growth of 12–14% in 2025, with lending outpacing deposits and a projected deposit gap of $80 billion by 2024.