Bond issuance across the Middle East and North Africa (MENA) surged to a record $86.8 billion during the first half of 2025, up 17% from the same period last year, according to data released by LSEG. The increase highlights the region’s growing appetite for diversified funding strategies and its ability to attract global investors despite shifting macroeconomic conditions.
HSBC Holdings emerged as the top bookrunner, leading 52 deals worth $8.9 billion and securing a 10% market share. Saudi Arabia was the most active issuer, accounting for 52% of total proceeds. The UAE followed with 25%, and Qatar contributed 8%.
Corporate entities were the dominant players, raising 55% of total proceeds, while government and agency issuers made up 26%.
Sukuk, Sovereigns and Strategic Deals Drive Growth
Issuance of Islamic bonds (sukuk) hit an all-time H1 record, totalling $32.2 billion—up 14% year-on-year and representing 37% of overall bond proceeds. Despite the market anticipating regulatory changes, such as the implementation of AAOIFI Standard 62, no major shifts materialized in the first half, contributing to continued sukuk market stability.
Several high-profile deals shaped the market landscape. Saudi Arabia’s Ma’aden and the Saudi Real Estate Refinance Company (SRC) issued debut USD sukuk, while Saudi Electricity returned with a dual-tranche offering. In the UAE, Mubadala, ADQ, and Masdar remained active, and ADNOC made its sukuk debut with a $1.5 billion issuance—now the world’s largest AA-rated corporate sukuk.
“The breadth of issuers, from sovereigns to corporates and banks, underscores the region’s maturity and diversification,” said Khaled Darwish, Head of CEEMEA Debt Capital Markets at HSBC.
Formosa Bonds and Asian Ties Deepen
Formosa bonds gained traction, with banks like FAB, ENBD, and ADCB tapping these markets multiple times in H1 2025. FAB also led the region’s first digital bond issuance with HSBC and ADX.
“Tier 1 markets have shown significant momentum, supported by strong demand from Asia’s private capital. GCC issuers are increasingly turning toward Asian investors, where HSBC maintains a dominant position,” added Darwish.
The return of Egypt and Qatar to international debt markets further demonstrated growing regional confidence. Egypt issued bonds after a long hiatus, while Qatar raised $3 billion in February 2025.
Investor Sentiment Remains Resilient Despite Global Uncertainty
LSEG’s findings also point to improving sovereign fundamentals. Oil revenues have bolstered government surpluses, strengthened sovereign wealth funds, and led to credit upgrades for Oman and Qatar. As geopolitical uncertainties persist, the region’s strong credit profiles and yield opportunities remain attractive.
“GCC countries continue to show remarkable resilience. For U.S. fund managers, nations like Saudi Arabia, Egypt, and Turkey remain key investment destinations not just for returns, but for stability,” Darwish concluded.
