Wednesday, May 27, 2026

Riyad Capital Issues $133M Sukuk for Sumou Global Investment

9 months ago
1 min read

Riyadh — Riyad Capital announced it has successfully raised $133.3 million (SAR 500 million) by issuing a Sukuk for Sumou Global Investment Company, underscoring strong investor appetite for Saudi Arabia’s real estate sector.

The Sukuk is senior secured, carries a 3-year term, and pays an 8.5% quarterly return. Originally targeted at $80 million (SAR 300 million), the issuance was expanded to $133 million after overwhelming investor interest, with subscriptions nearly double the initial offer.

Riyad Capital acted as the sole arranger and bookrunner. CEO Abdullah Alshwer said the robust demand demonstrates investor confidence in the Kingdom’s real estate industry, a core pillar of Saudi Vision 2030.

Abdulrahman Al Qahtani, CEO of Sumou Global Investment, said the Sukuk strengthens the company’s funding diversification, supports growth plans, and sets a benchmark for future issuances.

Founded in 2022 and fully owned by Sumou Holding Company, Sumou Global Investment develops projects across land development, infrastructure, mixed-use complexes, and hospitality. The financing is expected to accelerate its pipeline of large-scale real estate projects.

The broader Sukuk market continues to expand globally. According to S&P Global, issuances in 2025 are projected to reach $190–200 billion, with an additional $70–80 billion from foreign-currency Sukuk. This momentum reflects the rising role of Islamic finance in meeting infrastructure and corporate funding needs across emerging markets.

By tapping strong domestic and institutional demand, the Riyad Capital-Sumou transaction highlights how Saudi Arabia’s real estate financing is aligning with Vision 2030’s diversification goals while fueling investor confidence in Islamic debt instruments.

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