RIYADH: Saudi Arabia’s National Debt Management Center is on track to launch a sukuk savings program to further develop the local market, the center’s CEO, Hani Al-Medaini, revealed on Monday.
Speaking at the Capital Market Forum, he highlighted several initiatives his center has planned to help the domestic market grow and strengthen.
“Several milestones have been achieved so far to launch the first sukuk savings program that is aimed directly toward the retail investor,” Al-Medaini said.
He also told the forum that the NDMC is planning to get riyal-denominated sukuk included in global indices with the help of the Capital Market Authority.
“The Capital Market Authority is leading us on that front while providing full support. That will help in creating more liquidity in our domestic market,” the NDMC chief added.
Al-Medaini said the center has plans to expand its local and international investors base. “This is also an area of focus that will help in deepening the market not only for the sovereign as an issuer but also as a private sector issuer,” the CEO emphasizes.
Al-Medaini also spoke about the development of the sukuk market, which included extending the local curve to 12, 15, and 30 years as well as reducing the face value of the sukuk from SR1 million ($266,000) to SR1,000, he added.
Between 2019 and 2020, several products such as the sukuk mutual funds and the exchange-traded funds were introduced to the market, he added.
During the same period, the first-ever liability management for the Kingdom was conducted, Al-Medaini underlined.
Between 2021 and 2022, there was also the activation of the linkage between Edaa – Saudi Securities Depository Center Co. – and Clearstream and Euroclear – European financial firms, the CEO added.