UAE tops GCC debt growth charts in 1Q 2025

The UAE posted the highest y-o-y increase in primary debt issuances in the GCC last quarter (+61.6%), raising USD 10.2 bn across 29 transactions, according to Kuwait Financial Center’s (Markaz) fixed income report (pdf) for 1Q 2025. The Emirates accounted for 19.7% of the GCC’s total volume of primary bonds and sukuk sales — which came in at USD 51.5 bn across 125 transactions during the first quarter of the year.

In terms of value, the UAE was second only to Saudi Arabia, with the latter raising USD 31 bn from 46 issuances in 1Q, down 19.6% y-o-y and accounting for 60.2% of the market last quarter. Qatar came in a distant third, raising USD 7.1 bn from 38 debt sales, representing 13.9% of the total issuance volume.

MEANWHILE- Kuwait logged the second highest y-o-y growth rate at 40.7% to USD 1.4 bn from nine issuances while Bahrain posted the steepest y-o-y decline at 44.5% to USD 1.5 bn across two transactions in 1Q.

Corporate debt is still king: Companies raised USD 32.1 bn in debt last quarter, up 45.3% y-o-y, representing 62.4% of the GCC’s total primary debt sales in 1Q. This dwarfed sovereign issuances, which raised USD 19.4 bn last quarter, down 41.8% y-o-y to account for 37.6% of the market. Meanwhile, government-related corporate entities raked in USD 6.8 bn, making up roughly 21% of all corporate issuances over the same time.

Dominating the table: The financial sector took the lead in 1Q 2025, raising USD 22 bn across 100 debt issuances, up 23.6% y-o-y, and accounting for 42.8% of the market. Governments followed with USD 9.4 bn from 12 transactions, down 41.8% y-o-y and making up 37.6% of total issuances. The real estate sector came in third with USD 4.3 bn from five issuances (8.3%), while all other sectors combined accounted for 11.3%.

Bonds gain favor over sukuk: Conventional bond issuances jumped 15.8% y-o-y in 1Q, pulling in USD 33.8 bn and claiming 65.5% of the market — up from 52.6% a year earlier. Sukuk, meanwhile, saw a pullback, down 32.5% to USD 17.8 bn

By tenor: Short-term issuances (under five years) accounted for 53.1% of total volume at USD 27.4 bn from 99 transactions. Mid-term issuances (5-10 years) followed, accounting for 35.8% of the market, while long-term paper (10-30 years) was limited to USD 809 mn from a single issuance. Only one ultra-long bond (30+ years) was issued, raising USD 1 bn. Perpetuals also gained ground, rising to USD 3.9 bn.

Large-cap issuances of USD 1 bn or more dominated the GCC primary market in 1Q 2025, accounting for 61.9% of total issuance volume. Mid-sized issuances, between USD 500 mn and 1 bn followed, accounting for USD 14.4 bn from 22 issuances. The most active slice by count was in the sub-USD 100 mn category, where 65 smaller transactions raised a combined USD 1.9 bn.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with Hong Kong’s Hang Seng up 1.6%, Shanghai Composite up 0.4%, while Japan’s Nikkei is down 1.2%. Meanwhile, Wall Street futures are inching down, signaling another week of potential losses for the S&P 500, Nasdaq and Dow Jones.

THE CLOSING BELL-

The ADX rose 0.2% on Friday on turnover of AED 714.3 mn. The index is down 1.5% YTD.

In the green: Aram Group (+4.9%), E7 Group (+3.0%) and ADNH Catering (+2.4%).

In the red: Sharjah Cement and Industrial Development Co. (-8.5%), Abu Dhabi National Hotels Co. (-3.8%) and Mair Group (-3.2%).

Over on the DFM, the index rose 0.7% on turnover of AED 275.8 mn. Meanwhile, Nasdaq Dubai was up 0.5%.