The Kingdom accounted for 54% of total bond proceeds coming out of MENA in 9M 2025, making it the region’s most active issuer of conventional and Islamic paper YTD despite its share remaining unchanged y-o-y, according to LSEG data cited by Zawya. Domestic activity reflects mostly sovereign and some corporate borrowing, as funding needs tied to the government’s wide-reaching diversification agenda continue to drive issuance across energy, utilities, and infrastructure.

Gov’t + state-linked players drove the increase: Four of the heftiest debt sales in the region were Saudi-born, including two sovereign issuances worth USD 11.95 bn and USD 5.5 bn, along with Aramco’s USD 4.95 bn debt offering in May. Other sizable offerings included a USD 2.97 bn global sukuk offering, state-owned Saudi Electricity’s USD 2.75 bn sukuk, a USD 2.49 bn issuance by Saudi Real Estate Refinance (SRC) just last month, and another USD 2.35 bn sovereign debt issuance.

Debt over equity: Borrowing via bonds and sukuk now outpaces equity fundraising here at home by roughly three to one, according to Moody’s. State-linked giants are leading the charge as they tap capital markets to finance large-scale projects, helping the Kingdom maintain its lead in regional debt markets.

Who’s next to tap the market: The next wave could come from hospitality, retail, tourism, manufacturing, mining, and real estate companies — sectors that are poised to capitalize on Vision 2030 investment flows. Moody’s expects borrowing to accelerate across these industries, with firms showing strategic focus and financial discipline best placed to manage higher leverage.

ICYMI- Fitch sees the Kingdom’s debt capital markets crossing the USD 500 bn mark byyear-end, buoyed by a widening budget deficit and a growing need to diversify funding in light of weaker oil prices. The Fitch expects Saudi Arabia’s borrowing mix to tilt increasingly toward non-market sources, as the government seeks to plug widening fiscal gaps without further crowding capital markets. The shift is already taking shape with Riyadh reportedly in talks to raise up to USD 10 bn through a syndicated loan, after securing at least two similar facilities since 2016.

ZOOMING OUT-

Domestic activity helped push the region’s bond proceeds to a record USD 125.9 bn in 9M 2025, up 20% y-o-y, with financial issuers accounting for the lion’s share of proceeds with 58%, followed by government and agencies with 25%. Volumes posted a record 27% increase. The UAE followed Saudi Arabia with 26% of total issuance, while Qatar ranked third with 9%. Kuwait also returned to the market after an eight-year hiatus, along with Oman, which made a comeback after four years.

Meanwhile, sukuk made up 38% of total bond proceeds in the region this year, up from 36% a year earlier, raising an all-time high of USD 48.2 bn in 9M 2025, up 28% y-o-y. Saudi Arabia led issuance in the Islamic debt market, accounting for the bulk of regional sukuk volume, followed by the UAE.

“GCC sukuk now account for 51% of total [global] supply, up from 46% in 2024. We've already surpassed record volumes in MENA bond and sukuk markets and expect further growth this year,” Nour Safa, managing director and head of MENA Debt Capital Markets at HSBC, told Zawya.

Who’s piling into Gulf debt? “Asian participation has been very strong in regional paper in 2025. It is much higher than prior years. This comes on the back of Asian investors trying to diversify their holdings away from home and seeing the GCC as a safe haven instrument,” Safa said. She added that tighter spreads and strong oversubscriptions also point to sustained investor demand for Gulf paper.

Bookrunner’s league table: Our friends at HSBC led the overall MENA bond market, including both conventional and Islamic issuances, with a 10.5% share of total proceeds, followed by Standard Chartered (9.1%) and JPMorgan (7.3%). In the sukuk segment, HSBC and Standard Chartered also shared the top spot, each arranging USD 3.9 bn in debt sales for an 8.1% market share.

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