What Happened?
-
Non-listed corporate debt in Saudi Arabia surged by over 500% in the second quarter of 2025 compared to the same period in 2024.
-
These are debts issued by companies whose securities are not publicly traded on the stock exchange.
Why the Surge?
-
Investor diversification: Investors are moving beyond equities to spread risk and enhance returns.
-
Regulatory support: Saudi regulators introduced frameworks that make it easier for private companies to issue debt.
-
Economic confidence: Large-scale projects under Vision 2030 increase demand for corporate funding outside traditional bank loans.
Implications
-
The rise reflects a maturing financial market in Saudi Arabia.
-
Companies, especially in non-oil sectors, now have more financing options.
-
Investors gain access to new fixed-income opportunities, diversifying their portfolios.
Bottom Line
The 500% increase signals a structural shift: non-listed corporate debt is becoming a key component of Saudi Arabia’s financial landscape, offering both funding for companies and diversified opportunities for investors.