The UAE was the region’s second most active bond issuer in 9M 2025

The UAE accounted for 26% of total bond proceeds coming out of MENA in 9M 2025, making it the region’s second most active issuer of conventional and Islamic paper after Saudi Arabia, which accounted for 54%, according to LSEG data. Abu Dhabi’s USD 3 bn dual-tranche bond ranked among the region’s largest debt sales this year, drawing USD 18.5 bn in orders and pricing at record-tight spreads of 10 and 18 bps over US Treasuries, underscoring the Emirate’s AA-rated credit strength and deep investor demand.

The region’s bond proceeds climbed to a record USD 125.9 bn in the first nine months of the year, up 20% y-o-y, with financial issuers accounting for 58% of total proceeds, followed by governments and agencies at 25%. Volumes posted a record 27% increase, a record 9M tally. Qatar ranked third accounting for 9% of total issuance, while Kuwait and Oman made comebacks, returning to the market for the first time in years.

Sukuk made up 38% of total bond proceeds in the region so far this year (up from 36% a year earlier) raising USD 48.2 bn in 9M, up 28% y-o-y and setting a new record. Saudi Arabia led issuance in the Islamic debt market, followed by the UAE. “GCC sukuk now accounts 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, head of MENA Debt Capital Markets at HSBC, is quoted as saying.

Who’s piling into Gulf debt? “Asian participation has been very strong in regional paper in 2025,” Safa said, adding that it is much higher when compared to 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, adding that tighter spreads and strong oversubscriptions also point to sustained investor demand for Gulf paper.

Four of the heftiest debt sales in the region were Saudi-born as the Kingdom continues to raise funds for projects tied to Vision 2030, including two sovereign issuances totaling USD 11.95 bn and USD 5.5 bn, followed by Aramco’s USD 4.95 bn debt offering in May. Other sizable offerings included Saudi Arabia Global Sukuk’s USD 2.97 bn 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.

UAE banks also featured prominently in the sukuk league tables, with our friends at Mashreq among the most active arrangers in the region alongside Emirates NBD, First Abu Dhabi Bank, and Dubai Islamic Bank. Meanwhile, 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%).