Primary debt issuances of bonds and sukuk in the UAE amounted to $10.17 billion through 29 issues during the first quarter of 2025, representing 19.7 percent of the GCC market and marking an increase of 61.6 percent from the same quarter last year.
In its latest fixed income report, the Kuwait Financial Center (Markaz) revealed that the GCC region’s issuances amounted to $51.51 billion through 125 issuances during Q1 2025, a 7.1 percent annual decrease from $55.50 billion in Q1 2024.
Kuwaiti issuances grow 40.7 percent
Saudi-based issuances led the GCC region during Q1 2025, raising $31.01 billion through 46 issuances, down from $38.55 billion in Q1 2024 and representing 60.2 percent of issuances during the year.
The report also revealed that Qatari entities were the third largest issuers in terms of value, with $7.14 billion issued through 38 issuances, representing 13.9 percent of the issuances over the quarter. Bahraini issuers follow, with a total issuance size of $1.53 billion through 2 issuances, a 44.5 percent decrease from the same quarter last year.
Meanwhile, Kuwaiti issuances recorded a 40.7 percent increase from the same quarter last year, recording a total value of $1.41 billion through 9 issuances. Omani entities recorded the lowest value of issuances during the year, with $260 million raised through 1 issuance, representing 0.5 percent of the total value of issuances.
GCC corporate issuances dominate
Total GCC corporate primary issuances increased by 45.3 percent from Q1 2024, raising $32.12 billion compared to $22.11 billion in Q1 2024. Corporate issuances represented 62.4 percent of total issuances during the first quarter of 2025, contrasting with the preference of issuances in Q1 2024 where more sovereign entities raised capital.
Meanwhile, government-related corporate entities raised a total of $6.8 billion in Q1 2025, representing 21.2 percent of all corporate issuances. Total GCC sovereign primary issuances decreased by 41.8 percent in Q1 2025, raising $19.39 billion throughout the year, representing 37.6 percent of total issuances.
The report also revealed that conventional issuances increased by 15.8 percent, raising a total of $33.76 billion for the quarter. Sukuk issuances decreased by 32.5 percent in Q1 2025, resulting in a total value of $17.75 billion for the quarter.
As for issuer preferences, Q1 2025 saw an increased appetite for conventional bond issuances in the GCC, representing 65.5 percent of total issuances for the quarter. This follows the same trend as in Q1 2024, where conventional bonds also represented the bulk of issuances, with 52.6 percent of all issuances in Q1 2024 being conventional bonds.
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Financial sector leads issuances
The financial sector led the bond and sukuk issuances in Q1 2025, with a total value of $22 billion through 100 issuances, representing 42.8 percent of total issuances. Government issuances followed, with $19.4 billion through 12 issuances, representing 37.6 percent of total issuances. These figures mark a 23.6 percent increase in the financial sector’s issuances and a 41.8 percent decrease in government issuances.
Another sector that stood out during the quarter was real estate, with $4.3 billion through 5 issuances, while the remaining sectors together represented 11.34 percent of total issuances.
