Riyad Bank rolls out AT1 sukuk program

Riyad Bank set up a SAR 10 bn AT1 sukuk program, giving it a standing facility to issue perpetual shariah-compliant capital instruments as needed to support its capital base and liquidity management, according to Zawya.

The program comes from a position of strength: Riyad Bank’s Tier 1 capital adequacy ratio stood at 15.78% as of 30 September 2025, with total capital adequacy at 17.81%, both above the 11.079% regulatory minimum.

REMEMBER- Riyad Bank fully redeemed its SAR 3 bn Tier 2 sukuk in February, exercising the call option five years early, likely to cycle out older debt and make room for cheaper instruments like its USD 1 bn, 10-year Tier 2 sustainable note issued in January.

ADVISORS- Riyad Capital is acting as sole arranger and dealer, while A&O Shearman and Khoshaim are providing counsel.

Jazan gets a SAR 600 mn agricultural project

Jazan is getting a SAR 600 mn tropical fruits and greenhouse project, state news agency SPA reports. The 1 mn sqm project — split equally between advanced greenhouses and tropical fruit production — is being implemented through a partnership between local firm Amtar Al Khair Agricultural Crops and Dutch greenhouse specialist Kubo. It features smart climate controls, closed-loop irrigation, and water recycling systems that are expected to cut water consumption by up to 75%.

Our take: The Kingdom still imports 70-80% of its food, with disruptions in the Strait of Hormuz underscoring how quickly these critical supply chains can come under pressure. Projects like this won’t close that gap overnight, but they signal a push toward more domestic production, more foreign agricultural technology, and less dependence on import routes that run through contested waterways.

Riyadh mulls Dreamliner orders

Riyadh Air is considering buying 25-30 Boeing 787 Dreamliners and could expand its existing Airbus orderbook, Reuters reports, citing industry sources. The PIF-owned carrier could announce that it is converting most of its 33 Boeing Dreamliner options into firm orders as soon as next week. Some of its options for 25 Airbus A350-1000s long-haul jets may also be converted into firm orders in the future. Details are still being discussed, the sources said.

ICYMI: The airline received its first two commercial Boeing 787-9 Dreamliners last month, marking the delivery of the first of a planned fleet of 72 Dreamliners. Riyadh Air plans to add one Boeing 787-9 monthly and launch two new destinations every two months, aiming for 100 cities by 2030.