Saudi Shura calls for developing sukuk market

Saudi Arabia’s sukuk and bonds market are still relatively small, which does not reflect the size of the Saudi market, Al-Madina newspaper reported citing the Shura Council’s finance committee.

Although bank loans and the stock market are still the preferred options for Saudi companies to raise finances, bonds and sukuk are an important option to obtain funding for both the public and the private sectors, the finance committee said.

The committee called on the Capital Market Authority (CMA) to launch new initiatives, policies and programs to widen and diversify the stock and bond market.