Gulf banks raised $3.6 billion from capital markets in the second quarter

Forbes Middle East – Gulf Cooperation Council (GCC) banks raised approximately $3.58 billion through debt and equity issuances, excluding sukuk, during the second quarter of 2026, as financial institutions returned to capital markets driven by easing geopolitical tensions in the region.

Data from S&P Global indicated that Gulf banks completed eight financing deals in the second quarter, raising $2.41 billion in May and $1.17 billion in June.

Despite the resumption of issuance activity, total financing declined compared to the $5.53 billion raised in the first quarter of the year, marking the lowest quarterly issuance volume since the second quarter of 2024. UAE banks accounted for five of the eight deals executed in the second quarter, leading fundraising activity in the region.

First Abu Dhabi Bank (FAB) was the first Gulf bank to return to capital markets following the disruptions experienced in the region, raising $750 million through an issuance of Additional Tier 1 (AT1) bonds in May.

The return of Gulf banks to capital markets comes despite ongoing geopolitical uncertainty in the region, amid expectations that the banking sector’s robust performance will continue in the coming years, supported by the strength of financial centers and government backing.

Estimates from Visible Alpha, a unit of S&P Global, project that profits of several of the largest Gulf banks will grow in 2026.

The report noted that net interest income will remain the primary driver of bank profitability, with expectations for it to rise to $47.56 billion in 2026.