Global fixed-income issuances hit a new high in 2024

Global fixed-income issuances rose by 20% y-o-y to an all-time high of USD 10.7 tn in 2024, according to a recent report (pdf) by Kuwait-based financial firm Kamco Invest, citing data from LSEG.

The Mena region’s bond issuances reached a three-year high in 2024 due to a surge in corporate issuances. Aggregate bond issuances rose by 39.4% y-o-y to 141.1 bn in 2024, with governments raising USD 68.9 bn and corporate issuances increasing by 77.4% y-o-y to USD 72.2 bn. GCC issuances dominated, accounting for 73% of the MENA total, hitting a record USD 103.4 bn, up 70.9% y-o-y.

The UAE led the region and the GCC in bond issuances, with USD 49.7 bn during the year, up from USD 31.2 bn in 2023, followed by Saudi Arabia, which issued USD 30.8 bn in bonds, and Qatar, which issued USD 16.8 bn. Saudi Arabia was the biggest issuer of fixed-income instruments in the GCC region with USD 84 bn, followed by the UAE at USD 61 bn.

Total sovereign bond issuances rose to USD 33.3 bn in 2024, up from USD 20.2 in 2023. Meanwhile, GCC corporate issuances rose to USD 70.1 bn in 2024 from USD 40.3 bn in 2023.

Sukuk are still on the rise: Global sukuk issuances hit a three-year high at USD 132.5 bn, up 9.3% y-o-y, with the GCC contributing USD 82.1 bn. Saudi Arabia took the top spot at USD 54.9 bn, driven by soaring government issuances, followed by Malaysia (USD 25.7 bn) and the UAE (USD 11.1 bn).

Expect a strong year for GCC issuances: While global fixed-income issuances are expected to cool amid higher yields and elevated global debt, GCC markets could see a 2H recovery as inflation and rates stabilize. A strong pipeline of projects, along with a dip in oil prices, is also expected to drive government issuances, while sukuk issuances are set to dominate, fueled by demand for sustainable finance and ESG trends.

MARKETS THIS MORNING-

Asian markets are once again down in early trading, except for Hong Kong’s Hang Seng, which is up 0.4% after the People’s Bank of China said it would suspend treasury bond purchases. Over on Wall Street, futures also indicate markets will open in the red, with futures for S&P 500, the Dow Jones, and the Nasdaq all down as investors await fresh nonfarm payrolls data for a clearer indication of the US Federal Reserve’s next moves on interest rates.

THE CLOSING BELL-

The ADX fell 0.03% yesterday on turnover of AED 1.1 bn. The index is up 0.5% YTD.

In the green: Gulf Pharmaceutical Industries (+14.7%), Umm Al Qaiwain General Investment Co. (+6.9%) and Gulf Medical Projects Company (+5.0%).

In the red: Abu Dhabi National Co. for Building Materials (-6.8%), Commercial Bank International (-3.7%) and Abu Dhabi Ports Company (-2.0%).

Over on the DFM, the index rose 0.4% on turnover of AED 691.1 mn. Meanwhile, Nasdaq Dubai rose 2.4%.