UAE-based issuers have firmly established their leadership in the Gulf Cooperation Council (GCC) bond and sukuk markets, successfully raising an impressive $11.7 billion through 28 issuances in the third quarter of 2024. This marks a significant increase from the $7.8 billion raised across 17 issuances during the same period last year, according to a recent report by the Kuwait Financial Centre (Markaz).
Following closely, Saudi Arabia’s issuers secured $11.2 billion through 19 issuances in Q3 2024, solidifying their position as a key player in the regional market. Despite this, Saudi entities have led the GCC market overall during the first nine months of 2024, amassing $47.8 billion from 60 different issuances. The UAE, not far behind, raised $32.1 billion through a total of 88 issuances.
Qatar and Kuwait See Significant Increases
In terms of value, Qatari issuers emerged as the third-largest contributors in Q3 2024, raising $3.5 billion, which reflects a remarkable year-on-year increase of 236%. Meanwhile, Kuwaiti issuers saw a substantial rise as well, generating $1.7 billion from six issuances, compared to just $0.3 billion during the same timeframe last year.
According to Markaz, Bahrain’s issuers managed to raise $35 million from a single issuance in Q3 2024, while Omani entities brought in $20 million.
Energy Sector Leads Debt Issuance
The energy sector was the primary driver of debt issuances by value in the GCC during the quarter, accounting for $13.1 billion, or 47% of the total value of issuances. Following closely was the financial sector, which raised $11.5 billion, reflecting strong investor interest across key industries.
Total corporate primary issuances in the GCC experienced a staggering year-on-year growth of 233% in Q3 2024, reaching $26.3 billion. This surge brings the total value for the first nine months of the year to a substantial $59.4 billion, indicating a robust recovery and increased investor confidence in the region’s financial markets.
A Positive Outlook for the GCC Market
The impressive figures for Q3 2024 highlight the resilience and dynamism of the GCC bond and sukuk markets, with UAE issuers at the forefront. The continuing strong performance is a positive indicator for future capital raising efforts across the region, suggesting a growing appetite among investors for various types of securities.
As the market evolves, the role of UAE and its neighboring countries in shaping the bond and sukuk landscape will be pivotal in attracting further investments and fostering economic growth.
