Sign in
The UAE was the second biggest issuer of fixed-income instruments in the GCC region this year, with aggregate bonds and sukuk rising 41.3% y-o-y to USD 61 bn, coming second to Saudi Arabia’s USD 84 bn, according to a recent report (pdf) by Kuwait-based financial firm Kamco Invest. The country led the region in the issuance of green instruments in 2024, with USD 3.2 bn in issuances.
The country is expected to witness bond maturities of USD 153.2 bn between 2025 and 2029, only behind Saudi Arabia’s expected maturities of USD 168 bn, with the lion’s share of maturities coming from instruments issued by corporates at USD 120 bn.
UAE banks will have the region’s largest maturities over the next five years at USD 69.3 bn. Combined with Qatar’s maturities of USD 25.9 bn, this figure accounts for 40.5% of the total corporate maturities in the GCC. Meanwhile, the country’s real estate maturities will lead the GCC over the next five years at USD 7.2 bn.
MEANWHILE, IN THE WIDER GCC REGION-
The GCC saw total fixed-income issuances climb 57.3% y-o-y to a record-high USD 182.7 bn in 2024. This growth was driven by a surge in corporate issuances, which rose by 48.5% y-o-y to USD 105.4 bn in 2024.
GCC sovereign maturities are projected at USD 232.3 bn over the next five years (2025–2029), slightly below corporate maturities, which total USD 235 bn. Bond and sukuk maturities are expected to remain elevated throughout this period before gradually declining in the subsequent years, Kamco says, citing Bloomberg data.
What the pundits are saying: Shifting US bond yields and evolving global conditions signal challenges for fixed-income markets, according to the report. However, the GCC’s strong fiscal standing, low external borrowing, and sovereign wealth funds position it ahead of debt-laden emerging markets, ensuring resilience amid uncertainty, the report said.
