Discussions are ongoing between the Saudi Arabian Monetary Agency and local and international banks with operations in the kingdom, with an issue expected in the first quarter of next year. The sukuk will not be issued directly by the government, but will be marketed by a governmental agency or a state fund.
While quasi-sovereign names have appeared in the local bond market in recent years, such as Saudi Basic Industries Corporation and Saudi Electricity Company, the Saudi sovereign has not issued debt for many years. Government debt was seen by authorities as a major problem in the late 1990s, when it was around 120 per cent of GDP.
source: Gulf Daily News