GCC Raises $92 Billion Through Bond and Sukuk Issuances
The GCC Bonds and Sukuk market primary issuances in H1 2025 raised $92.04 billion raised through 215 sovereign and corporate issuances, recording a 5% decrease from the same period last year.
While conventional issuances regained popularity among investors representing 56% of the market worth $51.6 billion in in issuances in the first half of 2025 – recording a 7.8% increase from the same period last year. Sukuk issuances fell 18% totalling $40.4 billion in the first half of 2025.
As of 30 June 2025, Saudi Arabia accounted for 52% of outstanding GCC primary issuances. In terms of market performance, the S&P MENA Bond and Sukuk Index posted a total return of 3.99%. Moreover, five-year sovereign CDS spreads experienced mixed performance across GCC countries during H1 2025 with Kuwait recording significant tightening in spreads by nearly 11.5%.
The GCC Bonds and Sukuk primary issuances amounted to $92.04 billion during the first half of 2025, which represents a decrease of 5.46% from $97.4 billion raised during H1 2024. The total number of primary issuances during H1 2025 was 215 issuances compared to 152 during H1 2024.
Geographical Allocation
Saudi Arabian entities were the leading issuers in the GCC during H1 2025, raising a total of $47.9 billion through 71 issuances (H1 2024: $59.7 billion through 40 issuances), representing 52% of the total value of primary GCC Bonds and Sukuk issuances.
The UAE second in terms of value raised $24 billion through 69 issuances during the first half (H1 2024: $19.6 billion through 58 issuances), representing 26% of the total value of primary GCC bonds and sukuk issuances.
Qatar entities were the third largest issuers in terms of value within the GCC during H1 2025 with $10 billion (H1 2024: $10.02 billion), recording a 0.2% decrease from H1 2024. Bahraini Entities raised $5.62 billion during the first half of 2025 through seven issuances representing 6.1% of the market.
Omani entities raised $1.08 billion representing 1.2% of the market and Kuwaiti entities raised a total of $3.39 billion (H1 2024: $2.29 billion) through four issuances recording a 48% increase from H1 2024 and representing 3.7% of the market.
Sovereign vs Corporate
While 2024 was a noteworthy year for GCC sovereign issuances, the first half of 2025 saw increased appetite for corporate issuances.
Total GCC sovereign primary issuances decreased 48% in H1 2025 compared to the same period in 2024 to reach $31.9 billion (H1 2024: $61.45 billion). The largest sovereign issuance in the GCC was by the Saudi Government with a $5 billion bond.
The Kuwaiti Government also issued a sovereign bond for the first time since 2017 with a value of $1.6 billion, this issuance was marketed mainly to Kuwaiti banks.
Total GCC corporate primary issuances increased 67% during H1 2025 to reach $60.2 billion (H1 2024: $35.9 billion) where government related entities constituted 12% of corporate issuances or $11.2 billion.
The GCC country with the highest value of corporate issuances was Saudi Arabia with $28.5 billion, whereas the single largest corporate issuance was by Saudi’s Public Investment Fund (PIF) with a value of $2.4 billion.
Conventional vs. Sukuk
Sukuk issuances fell during H1 2025 with a 18% decrease compared to H1 2024. Through 65 issuances, Sukuks in the region raised $40.4 billion, the report said.
The largest sukuk issuance was by the Saudi Government with an issue size of $4.5 billion. on the other hand, GCC Conventional issuances in H1 2025 amounted to $51.6 billion, an increase of 7.8% from the same period last year.
