The debt capital market (DCM) across the Gulf Cooperation Council (GCC) is experiencing robust expansion and is projected to exceed $1.25 trillion in 2026, according to Fitch Ratings. This represents a growth of approximately 13.6% from $1.1 trillion at the end of 2025, driven by lower oil prices, interest rate cuts, and continued economic diversification efforts.
Bashar Al Natoor, Fitch’s Global Head of Islamic Finance, noted that cross-sector diversification, refinancing objectives, funding deficits, and government-led initiatives are key growth drivers. Despite geopolitical tensions and global economic volatility, the regional debt market has remained resilient, with Islamic bonds, or sukuk, reaching a record share of over 40% of total outstanding debt.
Strong Market Access and Investment-Grade Performance
Fitch highlighted that most GCC issuers maintained strong market access throughout 2025 and into 2026, despite global and regional shocks. Approximately 84% of sukuk issued in the region are rated investment-grade, while 90% of issuers maintain a stable outlook.
The agency also noted that the GCC’s outstanding DCM at the end of 2025 increased by 14% year-on-year, reflecting the market’s strength and growing investor confidence in the region’s debt instruments.
