Saudi Aramco is preparing to issue U.S. dollar-denominated sukuk, possibly within the month, according to people familiar with the plan told Reuters. The move comes as the state-owned energy giant looks to strengthen its finances against the backdrop of softening crude prices.
One of the sources indicated that Aramco may target between $3 billion and $4 billion through the planned sukuk, a Shariah-compliant financing instrument. The individuals requested anonymity as details of the transaction remain confidential.
If completed, Aramco’s offering would come on the heels of a wave of bond sales this month, spurred by robust investor appetite and sizable inflows into debt markets. In its August earnings call, the oil major signaled that it intends to keep tapping credit markets, noting that its leverage remains among the lowest in the sector.
In April, Reuters reported that Saudi officials privately conveyed to allies and market participants that the kingdom could absorb a downturn in crude prices by scaling up borrowing and tightening spending. The message underscored Riyadh’s effort to reassure stakeholders that its fiscal strategy remains resilient even when oil revenues soften. Analysts say such a stance highlights both the government’s growing reliance on debt markets and its determination to protect long-term economic diversification plans.
Aramco last accessed international debt markets in May 2025, securing $5 billion through a bond sale. Shortly after, the company released a sukuk prospectus, signaling that further fund-raising was on the horizon. Facing weaker crude prices, the company has stepped up cost-cutting measures and explored asset sales. Just last month, it posted a 22% decline in second-quarter earnings.
In August, Aramco entered into a $11 billion lease-and-leaseback arrangement for its Jafurah gas processing facilities with a consortium headed by BlackRock’s Global Infrastructure Partners, marking another step in diversifying its financing sources.
Aramco’s broader approach is to unlock capital from lower-yielding assets and channel it into areas with higher profitability, Chief Financial Officer Ziad Al-Murshed explained on the company’s latest earnings call.
In its August second-quarter results, Aramco kept its base dividend at $21.1 billion and confirmed its full-year payout guidance of $85.4 billion, showing that shareholder returns remain a priority despite volatile market conditions.
At the same time, the company is rolling out a $90 billion investment program covering 99 projects over the next three years to strengthen its presence in oil, gas, and petrochemicals. According to Oil & Gas Middle East, the projects aim to boost both upstream and downstream operations, focusing on innovation, efficiency, and sustainability.
The projects are divided across key areas: 58 in oil, gas, and petrochemicals; 22 in pipelines and distribution; and 19 in civil and marine infrastructure. This approach reflects Aramco’s plan to expand production capacity, modernize operations, and adopt advanced technologies. Forty of the projects are greenfield, with many offshore, and developments at Marjan and Shaybah underline the company’s efforts to improve production efficiency while cutting emissions.
Through partnerships with global players like Air Products and Baker Hughes, Aramco is looking to transform its energy output while supporting environmental goals. At a recent international conference, CEO Amin H. Nasser highlighted the balance between traditional fuels and new energy sources, stressing that energy security depends on investing in both oil and renewables, as reported by The News of Israel.
Taken together, Aramco’s planned sukuk issuance and its $90 billion project program show a two-pronged strategy: securing financial flexibility while investing in long-term growth and sustainability.