Saudi Arabia Leads GCC Debt Market with $47.9B Issued
Saudi Arabia GCC debt issuances topped the region in the first half of 2025, with the Kingdom raising $47.93 billion across 71 bond and sukuk offerings. This dominant position accounted for 52.1% of total Gulf Cooperation Council (GCC) issuances, as revealed in a detailed report by the Kuwait Financial Center (Markaz).
Despite the impressive figure, the volume represented a 19.8% year-on-year decline, falling from $59.73 billion in H1 2024. Nonetheless, the Kingdom maintained its lead, reflecting sustained investor appetite for Saudi fixed income instruments and the robustness of its fiscal strategy.
GCC Debt Market Overview and Saudi Leadership
Overall, GCC debt issuances for H1 2025 totaled $92.04 billion, down 5.5% from the previous year. While Saudi Arabia led with over half the market share, the UAE followed at a distant second with $24.03 billion raised from 69 issuances, a 22.2% increase from last year.
Qatar issued $10 billion from 58 offerings, while Bahrain and Kuwait saw sharp year-on-year increases, issuing $5.62 billion and $3.39 billion respectively. Oman had the lowest volume at $1.08 billion from six deals.
Fitch Ratings, in a separate analysis, noted that GCC outstanding debt surpassed $1 trillion, underscoring the region’s evolving financial sophistication and appetite for long-term funding instruments.
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Maturity, Size, and Currency Preferences
According to Markaz, short-term bonds and sukuk under five years dominated the market with $43.2 billion issued across 154 deals, or 46.9% of the total. Medium-term maturities (5–10 years) followed at $31.1 billion, while only $8.8 billion came from 10–30 year tenors.
Notably, perpetual issuances reached $8 billion from 12 deals — up significantly from the previous year. The largest share of issuance volume came from 32 $1 billion+ deals, accounting for $54.5 billion, or 59.2% of total value.
US dollar-denominated bonds dominated the currency landscape, raising $73.1 billion, equivalent to 79.4% of total issuance. The Saudi riyal was the second most popular currency, with $7 billion issued across eight deals. The Hong Kong dollar appeared in 20 deals totaling $682 million.
Sukuk vs Conventional Bonds and Issuer Breakdown
Interestingly, the first half of 2025 marked a shift in investor behavior. Conventional bonds surpassed sukuk, representing 56.1% of total issuances. This reverses the 2024 trend, where Islamic instruments dominated the GCC fixed income landscape.
Corporate issuers were particularly active, accounting for $60.2 billion, or 65.4% of all issuances — a 67.7% rise year-on-year. Government-related entities added $11.2 billion across 11 deals, while the financial sector led issuance activity with $40.1 billion from 167 deals.
In terms of sector distribution:
- Financial sector: 43.6% of total issuances
- Government: $31.9 billion from 25 deals
- Energy sector: $8.6 billion from 9 issuances
- Other sectors combined: 12.5%
Strategic Implications and Saudi Outlook
Saudi Arabia’s debt leadership aligns with its broader Vision 2030 economic diversification goals, attracting both domestic and global capital. In July 2025, the National Debt Management Center issued SR5.02 billion ($1.34 billion) in sukuk — a 113.6% rise over the previous month.
Earlier in February, the Kingdom launched a €2.25 billion euro-denominated bond, including a green tranche, signaling an interest in sustainable finance instruments. Kamco Invest forecasts that $168 billion in Saudi bonds will mature between 2025 and 2029, pointing to significant future refinancing needs.
With market confidence holding firm and issuance structures evolving, Saudi Arabia is set to maintain its dominance in the GCC debt space, supported by a transparent regulatory framework, an active investor base, and a maturing financial ecosystem.
