Primary debt issuances of bonds and sukuk in the Gulf Cooperation Council (GCC) region amounted to $147.9 billion through 296 issuances during 2024, a 55.1 percent increase from 2023. The total value of primary issuances during the last quarter of 2024 was $21.2 billion compared to $15.9 billion during the last quarter of 2023.
In its latest fixed income report, the Kuwait Financial Center “Markaz” revealed that Saudi-based issuances led the GCC during 2024, raising $79.5 billion through 79 issuances, up from $52.5 billion in 2023, an increase of 51.2 percent. This represents 53.7 percent of the total issuances during the year.
UAE records 109 issuances worth $38.5 billion
UAE-based issuances ranked second, with $38.5 billion through 109 issues, representing 26 percent of the market, and an increase of 28.1 percent from the previous year. Meanwhile, Qatari entities were the third largest issuers in terms of value, with $15.8 billion issued through 74 issuances, representing 10.7 percent of the issuances over the year.
Bahraini issuers followed, with a total issuance size of $6.9 billion through 10 issuances, a 29.1 percent increase from the previous year. Meanwhile, Kuwaiti issuances recorded the largest year-over-year growth, a 358.6 percent increase from the previous year, recording a total value of $3.9 billion through 9 issuances.
Finally, Omani entities recorded the lowest value of issuances during the year, with $3.4 billion raised through 15 issuances, representing 2.3 percent of issuances.
GCC sovereign primary issuances raise $68.2 billion
Total GCC corporate primary issuances increased by 45.5 percent from 2023, amounting to $79.7 billion raised, compared to $54.8 billion raised in 2023.
Corporate issuances represented 53.9 percent of total issuances for the year, following the same trend as in 2023, where corporate issuances represented 57.5 percent of total issuances. Meanwhile, government-related corporate entities raised a total of $17.4 billion in 2024, representing 21.7 percent of all corporate issuances.
On the other hand, total GCC sovereign primary issuances increased by 68.2 percent in 2024, raising $68.2 billion throughout the year, representing 46.1 percent of total issuances.
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Appetite grows for conventional GCC bond issuances
Conventional issuances increased by 79.4 percent in 2024, raising a total of $78.9 billion for the year, while sukuk issuances increased by 34.4 percent, resulting in a total value of $69.0 billion for the year. As for issuer preferences, 2024 saw an increased appetite for conventional bond issuances in the GCC, representing 53.3 percent of total issuances for the year, compared to 46.1 percent in 2023. This contrasts with 2023, which saw more sukuk issuances.
Notably, government issuances led the bond and sukuk issuances in 2024, with a total value of $68.2 billion through 46 issuances. The financial sector follows, with $51.3 billion through 203 issuances. This is an increase in both the size and the number of issuances for both sectors when compared to 2023. Then comes the energy sector, with $20.3 billion through 28 issuances, with the remaining sectors together representing a small portion of total issuance.
In 2024, U.S. dollar-denominated issuances led the GCC bonds and sukuk primary market, raising a total of $99.7 billion through 190 issuances, representing a substantial 66.9 percent of the total value raised in primary issuances during the year. The second largest issue currency was the Saudi Riyal (SAR), where SAR-denominated issuances raised a total of $33.9 billion through 21 issuances.
