Saudi Leads GCC in Bonds and Sukuk Issuances in Q1-2025

GCC bonds and sukuk primary issuances in Q1 of 2025 amounted to $51.5 billion raised through 125 issuances, a decline of 7.1%, compared with $55.5 billion raised during the corresponding period last year.

However, the number of issuances during the first quarter of this year far exceeded that of Q1 of 2024, increasing by 68.9%, from 74 issuances to 125 issuances. The average issuance size in Q1 of 2025 ($412.1 million) was significantly lower when compared to average issuance size during Q1 2024 ($749.3 million).

According to the latest analysis on the GCC Bonds and Sukuk Market, which was released by Kuwait Financial Centre (Markaz), issuances during the quarter also saw a change in issuance trends, with more corporate bonds/sukuk being issued than sovereign bonds/sukuk (61.3% vs 38.7%).

The conventional bonds continued to be issued at a higher pace than sukuk, with $33.8 billion conventional bonds being issued as against $17.8 billion sukuk issuances.

Saudi Arabian entities were the leading issuers in the GCC during Q1 of 2025, raising a total of $31 billion through 46 issuances, representing 60.2% of the total value of primary GCC bonds and sukuk issuances.

The UAE entities ranked second with $10.2 billion through 29 issuances, representing 19.7% of total issuances for the year, followed by Qatari entities ($7.1 billion through 38 issuances), Bahrain ($1.5 billion through 2 issuances).

Kuwait and Oman issued $1.4 billion and $300 million through 9 and 1 issuances respectively, the report said.

Corporate Issuances

In contrast with Q1 of 2024, issuances in Q1 of this year saw an increased appetite for corporate issuances versus sovereign issuances.

Total GCC corporate primary issuances (including Government Related Entities) increased by 45.3% in Q1 of 2025 compared with Q1 of 2024, reaching $32.1 billion. Corporate issuances represented 62.4% of all issuances in Q1 of 2025, compared with 39.9% for Q1 of 2024.

Government related corporate entities raised USD 6.8 billion through 6 issuances during the quarter, a decrease of 11.9% from Q1 2024 (USD 7.7 billion through 6 issuances)

Sovereigns raised a total of $19.4 billion during Q1 of 2025, a decrease of 41.8% from Q1 of 2024 ($33.3 billion). Sovereign issuances represented 37.6% of all issuances during the quarter, down from 60.1% in Q1 of 2024.

The GCC country with the highest value of corporate issuances was Saudi Arabia with $16.6 billion, whereas the single largest corporate issuance was by the Saudi Arabia’s sovereign wealth fund – Public Investment Fund (PIF) – with a value of $2.4 billion. In fact, the top five corporate issuances in terms of size for the quarter were dominated by Saudi issuers.

The largest sovereign issue of the quarter was also issued by Saudi Arabia with a value of $5 billion, the report said.

Credit Default Swaps

During the first quarter of 2025, Credit Default Swaps (CDS) spreads for GCC countries experienced mixed performances, with the spreads of both Kuwait and Qatar narrowing by 6.8% and 0.7% respectively.

On the other hand, the rest of the GCC countries experienced widening CDS spreads, with Oman and Saudi widening by 17% and 14.2% respectively. They are followed by Bahrain and Dubai, widening by 9.4% and 2% respectively. Finally, Abu Dhabi recorded marginal widening, with a quarter to date change of 0.5%.

Abu Dhabi and Qatar continue to maintain the highest sovereign credit ratings among peers in the GCC region, followed by Kuwait and then Saudi Arabia. Bahrain continues to have the lowest credit ratings in the GCC, the report added.