Saudi Arabia said it would launch its new market for Islamic bonds, or sukuk, and bonds on Saturday, offering firms new sources of funding amid tight credit conditions.
Trading of bonds would run from in the mornings, the regulator said on the Gulf Arab state bourse's website.
"I believe this is a very important step forward since it will deepen the Saudi financial market," said Talaat Hafez, a member of the Saudi Economic Association.
Central bank governor Muhammad al-Jasser said in February commercial banks and firms seeking financing should tap more into the debt market with bond issues.
"The bonds and sukuk will create liquidity for financing needs, especially for what is known as the mega projects," said Hafez.
Saudi Arabia is currently undergoing huge development projects that will need $400 billion over the next five years but some foriegn companies have pulled out of projects struggling to secure funding.
source: Business
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