The debt capital market (DCM) in the Gulf Cooperation Council (GCC) is in a significant expansion mode and is on track to surpass $1.25 trillion this year, according to Fitch Ratings.

The forecast growth of the market this year will be roughly 13.6%, from $1.1 trillion seen at the end of 2025, supported by lower oil prices, interest rate cuts and further diversification efforts.

"Growth drivers include cross-sector diversification and refinancing goals, funding deficits and projects, and government initiatives," the agency said.

The ratings agency noted that despite geopolitical risks and global economic turmoil, the regional market has remained strong, supported in part by the record-breaking growth of Islamic bonds or sukuk, which now account for over 40% of the total outstanding debt – the highest share to date.

"Most GCC issuers continued to maintain strong market access in 2025 and so far in 2026 despite global and regional shocks," said Bashar Al Natoor, Fitch’s Global Head of Islamic Finance.

The majority of Fitch-rated sukuk in the GCC, around 84%, are investment-grade, and 90% of issuers have a stable outlook. The GCC outstanding DCM at the end of last year was up by 14% from a year ago.

(Writing by Cleofe Maceda; editing by Seban Scaria) Seban.scaria@lseg.com