IslamicFinance.de

Saudi Arabia's ministry of finance has established a program to issue local currency sukuk, as the government covers a large budget deficit caused by low oil prices. The program has been submitted to the Capital Market Authority, the ministry said without specifying when the first sukuk issue would take place. Saudi commercial bankers said they expected the first issue in the next few days and believed 10 billion riyals ($2.7 billion) would be offered. The ministry noted that 13 domestic banks had qualified to participate in the sukuk issues. The Saudi government issued its first international sukuk in April and raised $9 billion.