Saudi Arabia led the Gulf region’s debt market in the first quarter of 2025, securing $31.01 billion from 41 bond and sukuk deals. This accounted for over 60 percent of all issuances across the Gulf Cooperation Council, maintaining the Kingdom’s dominance in fixed income. However, Saudi Arabia’s total was nearly 20 percent lower than the same period last year.
Across the GCC, primary debt issuances reached $51.51 billion, reflecting a 7 percent annual decline. Conventional bonds made up more than 65 percent of the region’s issuances, continuing a shift away from sukuk.
Saudi Arabia’s debt market growth has been fueled by investor demand for fixed income and rising interest rates. Notable deals included a €2.25 billion green bond and multiple riyal-denominated sukuk sales. The UAE followed with $10.17 billion in issuances, showing significant year-on-year growth, while Qatar and Kuwait also recorded robust activity. Oman saw the lowest issuance at $260 million.
Corporate issuances surged to $32.11 billion, a sharp increase from last year, making up the majority of new debt. Government-related entities contributed $6.8 billion. Sovereign issuances, however, dropped significantly to $19.39 billion.
Sector-wise, the financial industry led activity, raising $22 billion, followed by government and real estate sectors. Most issuances had maturities under five years, but larger deals—those above $1 billion—represented the majority of total funds raised. US dollar-denominated bonds and sukuk dominated the market, accounting for over 87 percent of the total value.
Looking ahead, forecasts suggest Saudi Arabia will continue to drive the region’s debt market, supported by ongoing economic reforms and an increasing presence in international capital markets.