The GCC debt capital markets, led by Saudi Arabia, delivered a record-breaking start to the year, raising more than $30 billion in January, despite ongoing geopolitical tensions.
Saudi issuance drives record volumes
In January, Saudi Arabia dominated regional issuance, with 10 issuers accessing the market. As a result, total supply reached the highest January level on record, averaging close to $1 billion per day. Ten issuers in Saudi Arabia have already tapped the market in January, which is the highest month of supply from the kingdom ever, at an average of almost a billion a day. The previous January record was $19 billion in 2025.
Earlier in the month, the sovereign raised $11.5 billion through a four-part bond, which encouraged other issuers to accelerate funding plans. Subsequently, PIF issued a $2 billion 10-year sukuk, with order books exceeding $11 billion. Moreover, Saudi Aramco raised $4 billion across four tranches, while Maaden secured $1 billion via sukuk.
Investors look past geopolitical risks
However, rising tensions between Iran and the US have not dampened investor demand. “Investors are brushing aside almost every geopolitical concern. Volumes have gone up, and transactions are landing with no new-issue premium and with well-diversified books that are heavily oversubscribed,” Mourad said.
Additionally, issuer and tenor diversification supported strong participation across sukuk and conventional formats. Therefore, Saudi Arabia’s outstanding debt is expected to approach $600 billion by 2026. Meanwhile, issuance momentum is likely to continue into early Ramadan, before moderating later in the year, as global bond markets remain active across regions.
