GCC debt issuance climbed to an unprecedented $226 billion by November 11, marking the highest level in a decade. This surge continued the momentum of last year, yet it significantly surpassed the previous record of $136.3 billion. The sharp rise was driven by strong investor demand, and issuers responded quickly as spreads tightened across the region. As a result, government entities and major corporates accelerated their return to the market. Nour Safa said, “Many issuers remained on the sidelines last year, partly due to expectations of rate cuts, but this year spreads have tightened massively in the region and that convinced them to return to the market.” Activity intensified after summer, as sovereign issuers from Saudi Arabia, Abu Dhabi, Kuwait, Bahrain, Qatar, and Oman launched a wave of offerings. Corporates also joined the momentum, with notable deals from major players such as Saudi Aramco and ADNOC. Additionally, Kuwait’s $11 billion return to debt markets after eight years and a $10 billion rise in Saudi bank issuances further lifted overall volumes.
IPO Activity Continues to Decline
While debt markets strengthened, IPO momentum moved in the opposite direction. The region recorded 40 listings this year, raising $5.81 billion, which represented a sharp drop from last year’s $12.88 billion across 52 IPOs. This slowdown reflected weaker post-listing performance for some companies, along with fewer government-related firms available for flotation after several years of part-privatisation efforts. Only Flynas crossed the $1 billion mark, leaving the region’s global IPO share at 4.1%, down from 10.3% the previous year. Even so, Saudi Arabia remained the most active IPO market in EMEA, contributing 31 of the 40 listings, which underscored its ongoing leadership despite broader regional moderation.
Market Dynamics Shift Across the Gulf
The contrasting trends between debt and equity markets reveal a shifting financial landscape. Although debt issuance benefited from improved pricing conditions, IPO markets adjusted to evolving investor sentiment. Consequently, capital raising strategies across the region changed, with issuers favouring debt as a more efficient path in 2025. These developments also reinforced the Gulf’s position as a significant and increasingly diversified financial hub, even as market cycles change.
