Primary debt issuances across the Gulf Cooperation Council (GCC) region surged by 55.1% in 2024, reaching a total of $147.9 billion. This growth, highlighted in a recent report by Kuwait Financial Center (Markaz), saw Saudi Arabia emerge as the dominant player, raising $79.5 billion through 79 issuances. This accounted for 53.7% of the total market share in the GCC.
Saudi Arabia’s bond and sukuk market has expanded considerably in recent years, driven by rising investor demand, particularly due to increasing interest rates. This demand led to several significant debt issuances, including the Kingdom’s €2.25 billion ($2.36 billion) euro-denominated bond sale in February, which featured its inaugural green tranche. Additionally, the Kingdom completed several sukuk issuances, including riyal-denominated sukuk worth SR3.07 billion ($818 million) in February and SR3.72 billion in January.
In terms of overall market activity, the GCC’s total primary debt issuances in the fourth quarter of 2024 alone reached $21.2 billion, a rise of 33.33% compared to the same period in 2023. The UAE followed Saudi Arabia, raising $38.5 billion through 109 offerings, marking a 28.1% increase from 2023. Qatar, Bahrain, Kuwait, and Oman also saw varying levels of growth, with Oman recording the smallest issuances at $3.4 billion.
The report further categorized the issuances by type, noting that GCC corporate offerings rose by 45.5% to $79.7 billion, while sovereign issuances grew by 68.2% to reach $68.2 billion. Conventional bond issuances saw a remarkable increase of 79.4%, while sukuk offerings grew by 34.4%. Additionally, government issuances, which raised $68.2 billion, led the market, followed by the financial sector, which raised $51.3 billion.
The study also highlighted a shift in issuer preferences, with conventional bond issuances now making up 53.3% of the total market share in 2024, compared to 46.1% in 2023. US dollar-denominated sukuk issuances led the market, totaling $99.7 billion, followed by Saudi riyal-denominated issuances, which raised $33.9 billion.
Looking ahead, the Kingdom’s debt market is expected to play a pivotal role in shaping the region’s debt landscape. Saudi Arabia is set to drive much of the growth in US dollar debt and sukuk issuance, with projections indicating the country’s debt capital market will hit $500 billion by the end of 2025, fueled by its Vision 2030 economic diversification efforts.
