The repayment of a USD 500 million sukuk has improved the state’s fiscal position, the Ministry of Finance and Planning has said.
The sukuk issued in 2021 was fully repaid on 2 April.
According to the ministry’s Weekly Fiscal Development report, total revenue and grants received by the government as of 2 April reached USD 800 million, up 11.6 percent from the USD 720 million received last year during the same period.
The state recorded a surplus of USD 150 million in the overall state budget balance, compared to USD 120 million in the same period last year.
According to the Finance Ministry, the USD 500 million sukuk and its coupon payment of USD 24.68 million was the most notable achievement for the government for the period. Payments were made using the Sovereign Development Fund and foreign exchange reserves.
The ministry also attributed its repayment capacity to the policies introduced since 2024 to improve the country’s fiscal position. As a result of these policies, the government reports indicate higher revenues, improved fiscal surplus, and successful debt servicing, alongside stronger foreign exchange management.
The main source of state revenue is tax revenue. So far this year, tax revenue stood at USD 650 million, an increase of 20.2 percent compared to USD 540 million in the same period last year. While GST on goods and services increased by USD 360 million or 17.8 percent, TGST on tourism goods and services increased by USD 270 million.
According to the report, the government's debt repayment rate has also increased. As of last week, loan repayments stood at USD 550 million, compared to USD 160 million in the same period last year. This is an increase of 254.5 percent. At the same time, interest expense declined from USD 98 million to USD 70 million, a decrease of 28.5 percent.