Kingdom to list riyal bonds on exchange next Sunday
strategy to make the kingdom a global investment powerhouse,” said Fahad Al-Saif, president of the Saudi Debt Management Office.
Authorities hope exchangebased trading of government debt will help to expand ownership beyond banks to insurers, mutual funds and even individual investors, making it easier for the government to finance its budget deficit.
By creating transparent benchmark prices for debt, the trading could also encourage more Saudi companies to issue corporate bonds, reducing their reliance on bank lending, which is high by international standards.
In mid-2015, the government began offering local currency bonds in monthly auctions to help cover a huge budget deficit caused by low oil prices. It suspended those issues in late 2016 as banks struggled to absorb so much debt and Riyadh began to borrow overseas, but launched monthly sukuk issues in mid-2017.