Strong issuance activity and growing global role highlight the UAE’s expanding debt market and Islamic finance leadership.
UAE Debt Market Grows 8.3% Year-on-Year
The UAE’s outstanding bonds and Sukuk reached $309.4 billion by the end of the first quarter of 2025, marking an 8.3% year-on-year increase, according to Fitch Ratings. The surge reflects the strength of the country’s expanding debt capital markets and its growing global influence in Islamic finance.
Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, told Emirates News Agency (WAM) that the UAE continues to exhibit robust momentum across its debt markets, underpinned by a resilient financial ecosystem and strategic positioning in the Sukuk space.
UAE Emerges as Key Sukuk Market Player
As of Q1 2025, Sukuk made up 20.2% of the UAE’s total outstanding debt, while the remainder comprised conventional bonds. Al Natoor emphasized the country’s prominent standing in the global Sukuk market, where it now holds a 6.5% share of total outstanding Sukuk globally. This places the UAE fourth worldwide, trailing only Malaysia, Saudi Arabia, and Indonesia.
During Q1 2025, Sukuk issuance in the UAE amounted to $4.9 billion, effectively doubling the figure recorded in Q4 2024. Meanwhile, bond issuances stood at $24.1 billion, demonstrating sustained investor confidence and healthy market appetite.
UAE Ranks High Among Emerging Market Issuers
The UAE also ranked as one of the largest issuers of US dollar-denominated debt among emerging markets—excluding China—holding a 7% share of total issuance in Q1 2025. This places the UAE just behind Saudi Arabia, Brazil, and Mexico.
In terms of ESG-related (Environmental, Social, and Governance) bonds and Sukuk, the UAE secured the third-highest position among emerging markets (excluding China), following Türkiye and the Philippines. This highlights the country’s growing commitment to sustainable finance.
Regional Debt Landscape and UAE’s Share
On a regional level, total outstanding debt—including both bonds and Sukuk—across the Gulf Cooperation Council (GCC) reached $1.03 trillion by Q1 2025. The UAE accounted for 30% of the total, giving it the second-largest share in the region. Additionally, the country also held a 15.6% share of the region’s Sukuk, again ranking second in the Gulf.
Fitch’s latest insights reinforce the UAE’s rising stature as a global debt market hub, particularly in the Islamic finance segment, with sustained growth expected to continue amid favorable economic and regulatory conditions.
