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The debt capital market (DCM) in the GCC has posted a strong growth, with outstanding volumes reaching $1.1 trillion in the third quarter of the year, up by 12.7 % from a year ago, according to Fitch Ratings.
Sukuk accounted for a huge bulk of the outstanding volumes at 40 %, up from 37.4 % in the first nine months of last year. Sukuk also posted a nearly 22 % year-on-year growth, significantly outpacing the performance of bonds, which grew by 7.2 %.
Saudi Arabia and the UAE are the largest DCM markets in the region, accounting for 46 % and 30 % of the outstanding, respectively.
In the coming year, the market is expected to remain strong on the back of state initiatives and robust issuance as governments pursue diversification goals. The market will also continue to benefit from favourable funding conditions and a high-quality issuer base.
“We expect the GCC debt capital market to remain resilient into 2026, supported by robust issuance, favourable funding conditions, and a high-quality issuer base,” said Bashar Al Natoor, Fitch’s Global Head of Islamic Finance.
(Writing by Cleofe Maceda ; editing by Seban Scaria)
