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Kuwait Financial Centre Markaz documented $55.04 billion in combined GCC bond and sukuk primary issuances during the three months through March 2026, spread across 95 deals for an average size of $579 million. Saudi Arabia accounted for $32.54 billion or 59.1 percent of the total through 42 transactions while the United Arab Emirates followed at $13.57 billion via 36 deals, the report stated. Qatar, Bahrain, Kuwait and Oman rounded out the country breakdown with $4.2 billion, $2.1 billion, $1.98 billion and $650 million respectively.
The Markaz quarterly review allocated $20.46 billion to government issuers, $19.45 billion to the financial sector and $5.52 billion to energy-related borrowing. Conventional bonds captured 65.2 percent of the market with $35.89 billion while sukuk totalled $19.15 billion, it added. Transactions larger than $1 billion made up $33.33 billion of the quarter’s activity.
Issuance value rose 5.6 percent from $52.1 billion in the corresponding 2025 period although the deal count dropped 26.3 percent from 129, according to Markaz. The shift produced the higher average deal size as issuers concentrated on benchmark offerings to anchor pricing in a period of softer secondary market performance. Corporate borrowers represented 62.8 percent of total issuance compared with 37.2 percent for sovereign entities.
Performance metrics reflected cautious investor sentiment with the S&P MENA Bond and Sukuk Index declining 1.94 percent over the quarter. Five-year sovereign CDS spreads widened across the board from December 2025 levels, led by Abu Dhabi and Qatar, the report noted. Heightened geopolitical risks stemming from Iran-United States tensions in March contributed to the risk aversion.
Fitch Ratings anticipated in January that full-year GCC debt capital market activity would exceed $1.25 trillion. The first-quarter outcome aligns with that projection as governments and companies tapped debt markets to finance diversification strategies. Sukuk volumes separately climbed 13.1 percent year on year through April, S&P Global data showed.
The report highlighted the Saudi government’s $3.5 billion conventional bond and $2.6 billion sukuk as the largest individual deals while the Public Investment Fund issued a $2 billion transaction. Such large-scale sovereign and quasi-sovereign offerings helped sustain momentum despite the reduced number of deals. Regional fixed income markets continue to provide a key funding channel for GCC economies.
