The fixed income market in the Gulf Cooperation Council (GCC) region has expanded at the beginning of the year, fueled by robust government-backed offerings and a strong appetite for bonds.

The total value of bond and sukuk issuances reached $55.04 billion spread across 95 deals in the first quarter of 2026, registering a 5.64% increase compared to a year ago, according to Markaz. 

Saudi Arabia led the market, accounting for $32.54 billion in offerings, or a 59.1% market share, followed by the UAE with $13.57 billion (24.7%), Qatar ($4.2 billion), Bahrain ($2.1 billion), Kuwait ($1.98 billion) and Oman ($650 million).

Among the sectors, the government was the largest issuer, with offerings totalling $20.46 billion, followed closely by the financial sector ($19.45 billion and energy ($5.52 billion).

Investors demonstrated a strong appetite for conventional bonds, which hit $35.89 billion, representing 65.2% of the market, while sukuk issuances reached $19.15 billion.

Large-scale offerings of more than $1 billion drove the volume, reaching $33.33 billion.

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