Benchmark Saudi sukuk signals reform success

Author: Gemma Varriale | Published: 31 Jan 2012

The success of Saudi Arabia’s first sovereign Islamic bond might signal a new era for Saudi’s nascent debt markets.

In a landmark move, the government has helped facilitate the development of the sukuk market by giving its guarantee to the Saudi General Authority for Civil Aviation’s (GACA) 15 billion riyal (£2.5 billion) borrowing. The airport authority’s sukuk is the biggest of its kind ever issued in the Kingdom....