Prime Highlights:
- Saudi Arabia and the UAE are set to lead the GCC in fixed-income maturities, with $174.5 billion and $171.8 billion expected between 2026 and 2030.
- Green-finance instruments surged to $12.5 billion in 2025, highlighting the region’s push toward sustainable investments.
Key Facts:
- Corporate debt in the GCC slightly exceeds government debt, totaling $263.3 billion compared to $244.8 billion in government bonds.
- Conventional bonds dominate the market with $317.6 billion, while sukuk accounts for $190.5 billion.
Background:
The Gulf Cooperation Council (GCC) is expected to see high levels of debt repayments over the next five years, mainly from Saudi Arabia and the UAE.
Saudi Arabia is estimated to owe a debt of 174.5 billion within the period 2026-2030, and the UAE is estimated to owe 171.8 billion. The surge reflects growing investor confidence in the region’s debt markets amid a global environment of elevated interest rates.
“The bulk of Saudi Arabia’s maturities are government-issued bonds and sukuk, totalling $106.4 billion, while the UAE’s maturities are largely corporate instruments at $136.2 billion,” Kamco Invest noted. Over the same period, Qatar’s maturities are expected to reach $85.6 billion, with Kuwait, Bahrain, and Oman each projected at around $25 billion.
The companies within GCC have a slight overdue compared to their governments, with corporate and government bonds standing at 263.3 billion and 244.8 billion, respectively. Most of the debt is in US dollars (64.7%), with Saudi riyals and Qatari riyals making up 10.6% and 6.3%.
Banks and financial services lead corporate debt with $210.4 billion in maturities, nearly 80% of total corporate debt. The energy sector has $21.8 billion in debt, while utilities, industrials, and real estate have smaller amounts. Conventional bonds lead the market with $317.6 billion, compared to $190.5 billion for sukuk.
In 2025, GCC bond and sukuk issuances totalled $206.6 billion, similar to the previous year. Corporate issuances reached a record $128.6 billion, balancing a drop in government issuance to $77.9 billion. By 2025, the green-finance instruments were increased to $12.5 billion, with the UAE and Saudi Arabia leading the way.
In 2026, bond and sukuk issuance is likely to remain robust, with the government funding amounting to 60 billion and refinancing amounting to 85.4 billion. The GCC is emerging as a major centre of quality debt investments, which is backed by good credit ratings and increased corporate involvement.
