"Center": 128.6% increase in bond and sukuk issuances in Kuwait in the first half of 2026

The Kuwait Finance House (KFH) stated in its fixed income report that initial issuances of bonds and sukuk in the Gulf Cooperation Council (GCC) countries totaled $102.69 billion through 161 issuances in the first half of 2026, representing a 6.50% increase compared to the same period last year, when total issuances reached approximately $96.42 billion in the first half of 2025. Saudi issuances led the GCC during the first half of 2026, raising $49.34 billion through 58 issuances, up from $48.58 billion in the first half of 2025, a 1.6% increase, accounting for 48% of the total value of GCC issuances. UAE issuances ranked second with a value of $25.45 billion through 58 issuances, representing 24.8% of the market, despite a 6.8% decline compared to the same period last year. Qatari entities ranked third in terms of issuance value, raising $12.4 billion through 18 issuances, a 32.3% increase compared to the same period last year, accounting for 12.1% of the total issuance value in the first half of 2026. Kuwaiti issuances followed with a total issuance value of $8.67 billion through 14 issuances, a 128.6% increase compared to the first half of 2025. Bahraini issuances recorded a 32.8% decline compared to the same period last year, reaching a total value of $4.03 billion through 5 issuances, while Omani entities issued a total of $1.82 billion through 6 issuances. Finally, the market saw two issuances from a regional institution, the Arab Energy Fund, with a value of $1.00 billion.

Sovereign Issuances

The report stated that the total initial issuances by companies in the GCC countries rose by 8.4% during the first half of 2026, reaching $66.67 billion, compared to $61.50 billion in the first half of 2025. Corporate issuances accounted for 64.9% of the total issuances in the first half of 2026, consistent with their 63.8% share in the first half of 2025, thereby continuing to capture a larger market share compared to sovereign issuances. Semi-government entities raised $20.37 billion through 15 issuances during the first half of 2026, an 81.4% increase compared to the first half of 2025, when they raised $11.22 billion through 11 issuances. The total value of initial sovereign issuances in the GCC countries rose by 3.1% during the first half of 2026, reaching $36.01 billion, accounting for 35.1% of total issuances.

Bonds and Sukuk

Traditional issuances rose by 33.3% in the first half of 2026 compared to the first half of 2025, raising a total of $73.63 billion. Conversely, sukuk issuances declined by 29.5% in the first half of 2026, reaching a total value of $29.06 billion. In terms of issuance preferences, the first half of 2026 saw greater demand for traditional issuances in the GCC countries, accounting for 71.7% of the total issuances for the period. This aligns with issuance preferences in the first half of 2025, when traditional bonds were also issued more than sukuk.

The financial sector led bond and sukuk issuances in the first half of 2026, with a total value of $41.70 billion through 104 issuances, representing 40.6% of the total issuance value. Government issuances followed with a value of $36.01 billion through 29 issuances, accounting for 35.1% of the total issuance value. This reflects increases in both financial sector issuances by 2.4% and government issuances by 3.1% compared to the same period last year. The energy sector ranked third with a value of $13.72 billion through 11 issuances, accounting for 13.4% of the total issuance value, while other sectors combined accounted for a smaller share of 11.0% of total issuances.

Currency Structure

USD-denominated issuances continued to lead the initial bond and sukuk issuance market in the GCC countries during the first half of 2026, raising $83.42 billion through 100 issuances, representing a significant 81.2% of the total value of initial issuances. The Saudi Riyal was the second-largest currency by value, with issuances denominated in it totaling $7.46 billion through 10 issuances, followed by Kuwaiti Dinar-denominated issuances with a total value of $5.67 billion through 12 issuances. Other currencies, which totaled $3.7 billion, included the British Pound, which accounted for 0.8% of total issuances with a total value of $785 million through 4 issuances.

Credit Ratings

During the first half of 2026, a total of 75.1% of traditional bond and sukuk issuances in the GCC received one or more credit ratings from one of the following credit rating agencies: Standard & Poor’s, Moody’s, Fitch, and Capital Intelligence. This represents an increase from the first half of 2025, when rated issuances accounted for 69.9% of the total issuance value. High-grade rated issuances accounted for 69.8% of the total issuance value, while high-yield rated issuances accounted for 5.3%.