Alqemam Launches SAR 4 Million Sukuk to Boost FinTech

Saudi Arabia’s ongoing commitment to developing a robust and diversified financial landscape takes another promising step with the second sukuk issuance from Alqemam for Computer Systems Company. On June 25, 2025, the company launched a SAR 4 million ($1 million) tranche of sukuk through the Sukuk Financial Company’s regulated electronic platform. Scheduled to remain open until August 25, 2025, this offering signifies not only a boost to the company’s investment profile but also an important chapter in the evolution of Sharia-compliant financial innovation within the region.

This is the second tranche of Alqemam’s broader sukuk programme denominated in Saudi Riyals, following the successful completion of its first tranche valued at SAR 3 million, which was issued on May 15, 2023. The continuation of the programme demonstrates both the effectiveness of Islamic debt instruments and the increasing demand from local investors for ethical financial products rooted in the principles of Islamic law.

Details of the Offering and Eligibility Criteria

The current sukuk tranche is available exclusively to eligible investors within Saudi Arabia. This includes both natural persons (individuals) and legal persons (institutions) who meet the criteria defined under Saudi regulatory frameworks. The offering is structured with a minimum subscription amount of SAR 1,000 per sukuk, ensuring that the instrument remains accessible to a broad base of participants.

Each sukuk unit is priced at SAR 1,000, maintaining consistency in valuation and simplifying the investment process. Sukuk Financial Company serves as the sole lead arranger and coordinator for this issuance, reinforcing its expertise and role in shaping the Islamic debt market in the Kingdom. The choice to conduct the transaction digitally through an electronic platform reflects the wider trend of digitization in financial services and aligns with Saudi Arabia’s ambitions for digital transformation under Vision 2030.

What Are Sukuk and Why Are They Important?

Sukuk are financial certificates that function similarly to bonds but are structured to comply with Islamic Sharia principles, which prohibit interest (riba) and speculative transactions (gharar). Instead of interest payments, sukuk investors receive returns from the profits generated by the underlying asset or project.

This ethical framework has made sukuk highly attractive in the Muslim world and beyond, especially among investors who prioritize moral or religious alignment in their portfolios. Sukuk also support real economic activity, as the financing is generally linked to tangible assets such as real estate, infrastructure, or intellectual property.

In the case of Saudi Arabia and Alqemam, sukuk offerings represent more than financial instruments—they serve as tools for fostering innovation, encouraging transparency, and stimulating the local investment ecosystem. The structure also reflects the country’s growing maturity in managing sophisticated Islamic financial instruments at a national scale.

A Glimpse into Alqemam for Computer Systems Co.

Alqemam for Computer Systems Company is a technology-focused enterprise listed on Saudi Arabia’s stock exchange. It specializes in software development, digital solutions, and IT system integrations, supporting both private and public sector organizations in optimizing their digital performance.

By leveraging sukuk instruments, Alqemam is tapping into the region’s surging appetite for innovative financing methods while preserving its Islamic values. The move also highlights how tech companies in Saudi Arabia are no longer reliant solely on equity markets or traditional bank loans to secure growth capital. Instead, they are increasingly adopting hybrid financing models that incorporate both market discipline and religious principles.

This positioning makes Alqemam part of a growing cohort of Saudi tech firms that align with both economic modernization and the socio-cultural identity of the Kingdom.

Broader Context: The Growth of Sukuk in the GCC

The Gulf Cooperation Council (GCC) region has emerged as a global hub for Islamic finance, and sukuk continue to be a critical instrument in sovereign and corporate financing strategies. In 2024, global sukuk issuance exceeded $150 billion, with GCC countries accounting for more than 30% of that figure. Saudi Arabia, in particular, led the region in terms of both sovereign and private-sector sukuk issuance, with a strong pipeline supported by government spending and private investment needs.

Saudi Arabia’s capital market authority (CMA) and other financial regulators have actively facilitated sukuk issuance by providing clear guidelines, promoting digital issuance platforms, and encouraging greater participation from domestic and institutional investors. This proactivity is key to driving investor confidence and improving market liquidity.

In addition, Saudi Arabia is integrating sukuk structures into its public finance management, infrastructure development, and even green investment programmes. These instruments are increasingly being adapted for sustainability goals, further demonstrating their versatility.

Investor Confidence and the Role of Regulatory Bodies

The trust in sukuk as a dependable investment tool is rooted not only in religious compatibility but also in strong regulatory oversight. The Sukuk Financial Company, acting as the lead arranger for Alqemam’s issuance, plays a pivotal role in ensuring that the issuance process remains transparent, fair, and efficient.

Saudi regulators have worked to reduce the legal and administrative complexity involved in issuing sukuk, allowing smaller companies—such as Alqemam—to participate in capital markets. This is important for market inclusiveness and long-term financial sustainability.

Moreover, initiatives such as the FinTech Saudi platform and the Kingdom’s Financial Sector Development Programme (FSDP) have contributed to increasing awareness about alternative finance options. These efforts collectively aim to diversify the Kingdom’s financing channels and enable businesses to access capital in ways that align with global best practices.

Digital Finance and Sukuk Platforms: A Transformational Fusion

One of the most significant aspects of the current sukuk issuance is its fully digital execution. By hosting the offering on a regulated electronic platform, Sukuk Financial Company is helping modernize what has traditionally been a paper-based process. This digital transformation allows for faster subscriptions, easier tracking, enhanced transparency, and a broader reach among tech-savvy investors.

Saudi Arabia has been steadily enhancing its digital finance infrastructure, and the use of online platforms for sukuk issuance is a logical next step in this evolution. It reflects broader trends in FinTech adoption across the Kingdom, where mobile banking, blockchain-based transactions, and artificial intelligence tools are increasingly embedded into financial workflows.

In this context, sukuk are no longer seen as just religiously compliant tools, but as innovative digital instruments that embody ethical finance in a modern format.

Outlook: What This Means for the Future of Finance

Alqemam’s second sukuk tranche is more than a fundraising event—it is a symbol of Saudi Arabia’s growing expertise in blending innovation, tradition, and technology in the financial sector. As the Kingdom continues to roll out initiatives aligned with Vision 2030, such moves represent a broader shift toward economic inclusivity and digital fluency.

This issuance also hints at a promising trend: tech companies becoming more active in financial markets through ethical instruments that appeal to investors seeking both returns and responsibility. It also shows that Islamic finance continues to evolve, remaining relevant not just in theological terms but also in technological and economic dimensions.

Given the positive response to the first sukuk tranche and the structure of the current one, it is likely that other Saudi tech firms will explore similar strategies. This will further deepen capital markets, improve financial access for small- and medium-sized enterprises (SMEs), and foster a more resilient economic base.

Ethical Investment, Digital Innovation, Regional Momentum

The sukuk issuance by Alqemam for Computer Systems Co. Represents a microcosm of the wider transformation unfolding in Saudi Arabia’s financial and technological sectors. It combines Islamic ethical frameworks with state-of-the-art financial technology to offer investors a secure, compliant, and accessible investment opportunity.

By reinforcing the use of sukuk through a digital platform and structured oversight, Saudi Arabia signals its commitment to building an inclusive, transparent, and future-ready financial ecosystem. As more entities follow suit, the region stands to benefit from enhanced capital flows, improved investor engagement, and a smarter approach to economic diversification.

Saudi Arabia’s financial evolution is now inextricably tied to both tradition and innovation—and sukuk are at the heart of that journey.