Saudi banks qualify for domestic sukuk program

The Debt Management Office of Saudi Arabia's finance ministry said 13 domestic banks have qualified to participate in the government’s planned sukuk program, Saudi Press Agency reported.

The ministry has signed a domestic sukuk agreements with Al Rajhi Bank, National Commercial Bank (NCB), Alinma Bank, Riyad Bank, Samba Financial Group, Saudi British Bank (SABB), Alawwal Bank, Arab National Bank (ANB), Bank Albilad, Bank Aljazira, Banque Saudi Fransi, Gulf International Bank, and Saudi Investment Bank (SAIB), the debt management office said.

The timing of the program’s launch, as well as any issuance, will be determined as the ministry sees suitable, the office added.

Finance minister Mohammed Al-Jadaan told Al Arabiya television last week that local currency sukuk issues, designed to help Riyadh cover a large budget deficit caused by low oil prices, would begin this month.