The Gulf’s debt machine has kicked into a higher gear. By the end of the third quarter, outstanding volumes across the region’s debt capital market swelled to a towering $1.1 trillion, marking a muscular 12.7% jump over the past year, based on new figures from Fitch Ratings.
One force in particular is rewriting the script: sukuk. Once a supporting act, they now command nearly 40% of all outstanding debt—an impressive leap from last year’s levels and a growth pace that leaves traditional bonds looking sluggish. While bonds edged up about 7%, sukuk sprinted ahead with almost 22% year-on-year expansion, underscoring the region’s demand for Shariah-aligned financing.
Two powerhouses continue to anchor the landscape. Saudi Arabia, the region’s undisputed heavyweight, holds 46% of all outstanding issuance, while the UAE claims a firm 30%, together shaping the Gulf’s financial pulse.
The next chapter looks no less ambitious. With governments doubling down on economic transformation plans and maintaining a steady pipeline of issuance, the region’s debt market appears set for another resilient year. Supportive funding conditions and a consistently strong issuer profile only add more fuel to the momentum.
As Fitch’s Islamic finance leadership puts it, the Gulf’s debt arena is primed to stay robust well into 2026—powered by confidence, diversification drives, and a market that shows no signs of easing its stride.
