According to a research report titled “GCC Bonds and Sukuk Market Survey for Q1-2023” by Markaz, the primary bond and sukuk issuance in the GCC totaled $28.3B in the first quarter of 2023, which marks a decline of 22.1% compared to the same period in 2022, where $36.3B was raised. The report also reveals that there were 62 primary debt issuances in Q1-2023, whereas 76 issuances were observed during the same period in 2022.
During Q1 2023, the GCC Bond and Sukuk market was dominated by Saudi-based issuers who raised a total of $21.3B, representing 75.4% of the total value raised in the region. The second-largest contributor was UAE entities, which raised $5.6B, accounting for 19.9% of the total primary issuances. Meanwhile, Qatar entities raised $0.9B, representing 3.2% of the total primary debt issuances, and Kuwaiti issuers raised $0.4B, which made up 1.6% of all issuances. Notably, no debt issuance was observed from Bahrain or Oman entities during Q1 2023.
In Q1 2023, sovereign issuances from GCC entities accounted for 60.2% of the total value of GCC primary issuances, amounting to $17.0B. This represents a decline of 21.2% year-on-year compared to its value in Q1 2022. Meanwhile, corporate primary issuances amounted to $11.3B, making up 39.8% of the total value of GCC primary issuances. However, this also represents a decline of 23.5% year-on-year compared to its value in Q1 2022.
During Q1 2023, conventional issuances in the GCC increased by 167.7% year-on-year, raising a total of $23.0B. This represents 81.4% of the total value of primary issuances in the region. Meanwhile, Sukuk issuances made up only 18.6% of the total value of primary issuances during the same period, declining by 81.1% year-on-year to $5.2B. This is a significant drop from the $27.7B raised in Q1 2022.
In Q1 2023, the government sector in the GCC was responsible for the highest amount of primary debt issuances in terms of value, raising $11.5B. This represents 40.7% of the total value of issuances in the region. The financial sector, including quasi-government entities, was the second largest contributor to the total value of primary issuances in the GCC, raising a total of $10.9 billion and representing 38.6% of the total market.
The GCC debt capital markets were dominated by issuances with tenures of 10-30 years during Q1 2023, which raised a total of $13.5B. This represents 47.8% of the total value of issuances. In second place were issuances with tenures of less than 5 years, which raised a total value of $7.2B, representing 25.5% of the total value of issuances.
During Q1 2023, the primary issuances of GCC Bonds and Sukuk ranged in size from $4M to $3.5B. However, the largest amount was raised by issuances with principal amounts greater than or equal to $1B, which raised a total of $22.0B. This represents 78% of the total primary issuances during the period.
During the first quarter of 2023, the GCC primary market for Bonds and Sukuk was dominated by US Dollar-denominated issuances, which raised a total of $25.6B, accounting for 90.4% of the total value of primary issuances. Saudi Riyal-denominated issuances came in second, raising a total of $1.1B or 3.9% of the total value of GCC primary issuances, according to TradeArabia.
During the first quarter of 2023, the GCC primary Bond and Sukuk market was dominated by US Dollar-denominated issuances, which raised a total of $25.6 billion, accounting for 90.4% of the total value of primary issuances. Saudi Riyal-denominated issuances came in second, raising a total of $1.1B or 3.9% of the total value of GCC primary issuances.
