Corporate Sukuk and Private Debt as Growth-Financing Tools for Saudi Enterprises under Vision 2030

@article{1720147,
      author = {Junaid Mahesar},
      title = {Corporate Sukuk and Private Debt as Growth-Financing Tools for Saudi Enterprises under Vision 2030},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {10},
      number = {1},
      pages = {3071-3083},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1720147.pdf},
      abstract = {Saudi enterprises require financing channels that can support expansion, innovation and regional development without concentrating risk in bank balance sheets or relying solely on public investment. This review examines corporate sukuk and private debt as complementary growth-financing tools under Vision 2030. It develops an issuer-centred framework covering strategic fit, financial readiness, instrument design, investor selection, liquidity resilience and governance. Evidence published between 2020 and 2025 indicates that sukuk can broaden access to institutional and faith-aligned capital, lengthen maturities and create repeatable market benchmarks, while private debt can provide tailored covenants, confidentiality, execution certainty and financing for companies that are not ready for public issuance. Their benefits are not automatic. Sukuk transactions require credible cash flows, suitable legal and Shariah structures, transparent disclosure and sufficient scale. Private debt requires disciplined leverage limits, independent valuation, lender diversification and protections against refinancing concentration. The review argues that firms should select instruments according to asset life, cash-flow visibility, ownership preferences, growth stage and governance capacity rather than headline coupon alone. A staged framework is proposed in which companies progress from bank dependence and bilateral direct lending to private placements, corporate sukuk and repeat market access. Policy priorities include issuer-readiness programmes, proportionate disclosure, credit enhancement, qualified-investor channels, improved secondary liquidity and stronger restructuring infrastructure. Together, corporate sukuk and well-governed private debt can mobilise domestic savings, finance productive enterprise growth and strengthen Saudi Arabia's non-oil economy.},
      keywords = {Saudi Arabia, Corporate Sukuk, Private Debt, Direct Lending, Enterprise Growth, Issuer Readiness, Vision 2030},
      month = {July},
      doi = {https://doi.org/10.64388/IREV10I1-1720147}
  }