Tameriz : A major development in the Saudi bonds and sukuk market in recent years

The financial coding company stated in a press release that the debt instruments market in the Kingdom of Saudi Arabia has undergone a significant transformation in recent years, thanks to efforts made within the Financial Sector Development Program, which is part of Vision 2030.

The program aims to diversify sources of income, boost the economy, and promote financial savings culture. As a result of these efforts, the debt instruments market in the Kingdom has become an important hub for financing and investment.

Technological financial platforms have played a crucial role in this development by providing various financial services to companies, creating an investment environment that is more accessible, efficient, and expanding the reach to include new segments of investors.

The company added that in the third quarter of 2023, the value of sukuk (Islamic bonds) offered through financial technology platforms exceeded SAR 377 million, compared to SAR 88.8 million in the same quarter of the previous year.

The number of sukuk increased from 52 to 311, according to the quarterly statistical bulletin issued by the Capital Market Authority, the entity authorized to license platforms for issuing debt instruments and investing in them, which currently includes six companies.

Teramiz emphasized that the value of sukuk programs it offered in the last 60 days exceeded a quarter of a billion Saudi riyals, financing more than 100 investment opportunities in over 10 different sectors, including real estate development.

The sukuk programs were distinctive for their monthly distributions, with 70% of the mentioned opportunities having monthly distributions with an average annual return of up to 15%, as stated in its press release.

Nasser Al-Sadoun, the CEO of Teramiz Financial, stated, “Our goal at Teramiz is to contribute to financing companies with a product that suits their needs, providing an open and transparent investment environment that allows everyone to access investment opportunities that were not previously available in Islamic sukuk.”

Financial technology platforms play a significant role in deepening the debt instruments market by contributing to the adoption of innovative platforms by the Capital Market Authority and providing an environment and regulations that contribute to achieving the goals of the Financial Sector Development Program, enhancing the Kingdom’s position as a leading regional and global financial center.