'Center': $103 billion in Gulf bonds and sukuk in the first half

A year-on-year increase of 6.5% compared to the same period in 2025.

Kuwaiti issuances surged 129% annually to $8.67 billion through 14 deals.

In its report on fixed income regarding primary bond and sukuk issuances in GCC countries, the Kuwait Finance House (KFH) stated that total issuances reached $102.69 billion through 161 deals during the first half of 2026, representing a 6.50% increase compared to the same period last year.

The report noted that Saudi Arabia led the Gulf states during the first half, raising $49.34 billion through 58 deals, a 1.6% increase, accounting for 48% of the total value of Gulf issuances. UAE issuances came in second at $25.45 billion through 58 deals, representing 24.8% of the market, despite a 6.8% decline compared to the same period last year.

It clarified that Qatari entities ranked third in terms of issuance value, raising $12.4 billion through 18 deals, a 32.3% increase compared to the same period last year, accounting for 12.1% of the total issuance value in the first half. Kuwaiti issuances followed, with a total issuance value of $8.67 billion through 14 deals, marking 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 deals, while Omani entities issued a total of $1.82 billion through 6 deals. Finally, the market saw two issuances from a regional entity, the Arab Energy Fund, valued at $1.00 billion.

Sovereign Issuances

The report clarified that total primary corporate issuances in the Gulf rose by 8.4% during the first half, 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.

It noted that quasi-governmental entities raised $20.37 billion through 15 deals 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 deals. The total value of primary sovereign issuances in the Gulf increased by 3.1% during the first half of 2026, reaching $36.01 billion, representing 35.1% of total issuances.

Traditional Bonds vs. 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. Regarding issuance preferences, the first half of 2026 saw greater demand for traditional issuances in the Gulf, accounting for 71.7% of the total issuances for the first half of the year. This aligns with issuance preferences in the first half of 2025, when traditional bonds were also issued more than sukuk.

Sector Distribution

The report noted that financial sector issuances topped bond and sukuk issuances in the first half of 2026, with a total value of $41.70 billion across 104 issuances, representing 40.6% of the total issuance value. Government issuances followed, totaling $36.01 billion through 29 issuances, accounting for 35.1% of the total issuance value. This reflects an increase 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, representing 13.4% of the total issuance value.

Maturity Extension

In the first half of 2026, primary issuances with a maturity of less than five years accounted for 42.2% of the Gulf debt capital markets, with a total value of $43.36 billion across 97 issuances. Primary issuances with maturities ranging from five to ten years followed, valued at $29.50 billion through 32 issuances, representing 28.7% of total issuances. Primary issuances with maturities between 10 and 30 years accounted for 19.0% of the Gulf debt capital markets, with a total value of $19.47 billion through 11 issuances year-to-date.

Issuance Size

During the first half of 2026, the size of primary issuances in the Gulf Cooperation Council (GCC) countries ranged from $4.1 million to $4.3 billion. Issuances valued at $1 billion or more held the largest share, totaling $63.55 billion across 35 issuances, representing 61.9% of the total amount issued in the GCC. Issuances ranging between $500 million and $1 billion followed, with a total of $26.55 billion across 41 issuances. The highest number of issuances fell within the category of issuances under $100 million, with 43 issuances totaling $1.28 billion in the first half of 2026.

Currency Structure

USD-denominated issuances continued to lead the primary issuance market, raising $83.42 billion through 100 issuances, representing a significant share of 81.2%. The Saudi Riyal was the second-largest issuance currency by value, with Riyal-denominated issuances raising a total of $7.46 billion through 10 issuances, followed by Kuwaiti Dinar-denominated issuances totaling $5.67 billion through 12 issuances.