The UAE continues to reinforce its standing as a leading regional centre for debt issuance, driven by strong market activity, growing investor confidence, and an expanding role in facilitating bond and sukuk offerings across the region.
UAE strengthens its position as a regional hub for debt issuance.
The UAE continues to reinforce its reputation as the most active and resilient fixed income market in the Gulf, maintaining strong momentum in debt issuance throughout 2025. Supported by consistent market activity and growing participation from corporate issuers, the country has further strengthened its standing as a central pillar of the region’s debt capital markets, according to a recent industry report.
Data from Kamco Invest’s GCC Fixed Income Market Update highlights the UAE’s expanding influence across regional debt markets. Total debt issuances originating from the Emirates reached $64.9 billion during the year, reflecting a moderate yet significant increase compared to the previous year. While the growth was not dramatic in absolute terms, analysts say it signals sustained confidence among issuers and investors alike, particularly at a time when global financial conditions remain complex and interest rate expectations continue to evolve.
The report notes that the UAE’s performance stands out within the Gulf Cooperation Council due to the consistency and diversity of its issuance activity. Rather than relying on sporadic large deals, the country has built a steady pipeline of offerings that has allowed it to consolidate its role as a dependable source of fixed income supply for regional and international investors.
Corporate issuers were a major force behind this growth, with banks playing a particularly prominent role. Financial institutions across the UAE accounted for a substantial share of total issuance, reflecting both their strong balance sheets and their proactive approach to managing funding needs. By tapping debt markets regularly, banks have not only supported issuance volumes but also contributed to shaping a more balanced and forward-looking maturity profile for the region’s fixed income market.
Analysts say this trend is especially important as it helps smooth refinancing risks over time. By extending maturities and staggering repayment schedules, UAE issuers are contributing to greater stability across the GCC debt landscape. This approach has been welcomed by investors, who increasingly value predictability and transparency amid global economic uncertainty.
Another key factor underpinning the UAE’s leadership is its growing prominence in sustainable finance. The country emerged as the leading issuer of green and sustainability-linked debt instruments within the GCC during the year, further enhancing its appeal to a broader pool of investors. These transactions align with the UAE’s wider economic and environmental objectives, while also positioning it as a regional pioneer in responsible financing.
Market participants note that the expansion of green financing has added a new dimension to the UAE’s fixed income ecosystem. By diversifying beyond conventional bonds and sukuk, issuers are attracting environmentally focused investors and strengthening the overall depth of the market. This diversification has helped ensure that issuance activity remains robust even as conditions shift across global capital markets.
The UAE’s continued success also reflects the strength of its financial infrastructure. Established hubs such as the Dubai International Financial Centre have played a central role in supporting issuance, offering a well-regulated environment, advanced market services, and easy access to international capital. Together with Abu Dhabi’s growing financial ecosystem, these centres have helped create a comprehensive platform for debt origination and distribution.
Beyond volumes, the report emphasises the qualitative improvements taking place in the UAE’s fixed income market. Issuers are becoming more sophisticated in their funding strategies, while investors are benefiting from a wider range of instruments, tenors, and risk profiles. This evolution has reinforced the country’s position as a key price-setter and liquidity provider within the GCC.
Despite broader regional competition, the UAE has managed to retain its leadership by combining scale with adaptability. Its ability to respond quickly to changing market dynamics, while maintaining a consistent issuance pipeline, has made it an increasingly indispensable player in regional debt markets.
Looking ahead, analysts expect the UAE to continue building on this foundation. While issuance volumes may fluctuate in response to global interest rate trends and macroeconomic developments, the country’s diversified issuer base and growing emphasis on sustainable finance are likely to support long-term growth.
In summary, the UAE’s performance in 2025 underscores its emergence as the Gulf’s most dynamic fixed income hub. With total issuances rising to $64.9 billion, strong participation from corporate borrowers, leadership in green financing, and a mature financial ecosystem, the Emirates has not only preserved its momentum but also reinforced its strategic importance in shaping the future of GCC debt markets.
The Gulf’s fixed income markets ended 2025 in a position of strength, demonstrating resilience despite a year marked by evolving global monetary dynamics and a clear shift in borrowing patterns. While several regional peers scaled back issuance amid changing fiscal priorities, the UAE stood out by sustaining growth and reinforcing its role as one of the region’s most dependable and diversified debt markets.
Across the GCC, the year was defined by a transition away from government-led borrowing toward greater participation by corporate issuers. This trend reflected both improved fiscal positions among sovereigns and rising private-sector funding needs, particularly among banks and large corporates preparing for future refinancing obligations. In this context, the UAE’s ability to maintain issuance momentum distinguished it from other Gulf economies that saw activity moderate.
Globally, the environment was supportive of fixed income issuance. Debt markets benefited from a weaker US dollar, easing financial conditions, and growing investor appetite for thematic and strategic financing. One of the most notable developments was the surge in artificial intelligence-related debt in the United States, where issuances linked to AI investments exceeded $200 billion, highlighting the expanding role of capital markets in funding long-term transformation.
These trends were mirrored on a global scale. According to data cited in the report from LSEG, worldwide fixed income issuance reached $9.5 trillion during the first nine months of 2025, representing a 12 per cent increase compared to the same period a year earlier. Risk appetite strengthened across credit categories, with high-yield issuance rising by 20 per cent and investment-grade issuance increasing by 8 per cent. This broad-based demand created favourable conditions for issuers across emerging and developed markets alike.
Within the GCC, inflation dynamics played a crucial role in shaping market sentiment. Price pressures eased across most major economies, reinforcing expectations of a soft landing. In the United States, consumer price inflation moderated to 2.7 per cent by November. The UK saw inflation retreat to 3.2 per cent, while the Eurozone approached price stability with inflation at 2.1 per cent. China, after flirting with deflation for much of the year, recorded a modest rebound toward the end of 2025.
These developments influenced global monetary policy, though central bank responses diverged. The US Federal Reserve implemented its third rate cut of the cycle, bringing its benchmark range down to between 3.50 and 3.75 per cent. The Bank of England followed suit with a closely contested 25-basis-point reduction, while the European Central Bank opted to pause. Japan, in contrast, moved in the opposite direction, raising interest rates.
For the GCC, whose currencies are largely pegged to the US dollar, monetary policy largely tracked the Fed’s actions. Most regional central banks implemented rate cuts in line with the US, helping to maintain stable borrowing conditions. Kuwait was the main exception, cutting rates by a smaller margin due to its currency basket arrangement. Overall, these conditions supported steady access to debt markets across the Gulf.
Issuance volumes across the GCC remained broadly unchanged in headline terms. Total primary market issuance reached $206.6 billion in 2025, virtually flat compared to $206.8 billion the year before. Beneath the surface, however, the composition of borrowing shifted significantly.
Government issuance declined sharply, falling to $77.9 billion from $98.6 billion in 2024, reflecting improved fiscal balances and reduced funding needs among several sovereigns. Corporate issuance moved in the opposite direction, climbing to a record $128.6 billion, up from $108.2 billion the previous year. This marked a decisive tilt toward private-sector borrowing across the region.
Bond issuances dominated activity, reaching an all-time high of $125.2 billion. Sukuk issuance, by contrast, declined by 19.1 per cent to $81.4 billion, reflecting issuer preference for conventional bonds amid favourable pricing and strong investor demand.
Against this regional backdrop, the UAE continued to play a leading role. Total issuance from the country rose to $64.9 billion, up from $63.4 billion in 2024. While the increase was modest, it stood in contrast to declines seen elsewhere and highlighted the UAE’s consistency as an issuance hub.
Corporate borrowers were the primary drivers of UAE activity, in line with broader regional trends. UAE banks, in particular, emerged as the dominant force, accounting for the largest share of upcoming corporate maturities in the GCC over the next five years. With $80.9 billion in maturities due, UAE banks surpassed their Qatari peers and underscored their central role in regional credit markets.
The UAE also strengthened its leadership in sustainable finance. Green bond and sukuk issuance from the country reached $5.6 billion in 2025, up significantly from $3.8 billion the previous year. This growth reinforced the UAE’s position as the GCC’s leading issuer of environmentally focused debt instruments.
Saudi Arabia remained the largest issuer in the region overall, with $82.0 billion in total issuance. However, this represented a notable 18.3 per cent decline from 2024 levels, reflecting reduced sovereign borrowing. Qatar followed a similar trajectory, with issuance falling 21.7 per cent to $22.1 billion. Kuwait, meanwhile, recorded the fastest growth, with issuance surging to $20.5 billion from just $2.6 billion after the passage of its long-awaited debt law.
Certain niche segments also rebounded strongly. Perpetual debt issuance rose sharply to $17.9 billion, up from $10.7 billion in 2024. Saudi Arabia led this category with $10.6 billion, while UAE issuers contributed $3.3 billion, highlighting the country’s growing sophistication in capital structure management.
Green financing across the GCC recovered to $12.5 billion, though it remained below the peak reached in 2023. The UAE and Saudi Arabia together accounted for more than 86 per cent of the region’s green issuance, cementing their dominance in this space.
Looking ahead, maturities represent a growing consideration for the region. Between 2026 and 2030, the GCC faces a combined $508 billion in sovereign and corporate debt coming due. The UAE alone accounts for $171.8 billion of this total, with corporates responsible for $136.2 billion—the largest corporate share in the region. Banks and financial institutions dominate these maturity profiles, representing nearly 80 per cent of all corporate maturities.
As attention turns to 2026, expectations around monetary policy will be critical. While the Federal Reserve projects a single rate cut next year, markets are pricing in the possibility of two. Inflation is forecast to continue easing, with Bloomberg projecting an average global rate of 2.8 per cent in 2026.
For the GCC, central banks are expected to follow the Fed’s lead, potentially delivering cumulative cuts of around 50 basis points. This environment is likely to support renewed sovereign issuance, particularly in Saudi Arabia and Kuwait, while corporate borrowing—especially in the UAE—is expected to remain elevated as issuers refinance and fund strategic priorities. With $85.4 billion in maturities due in 2026 alone, the coming year is set to be shaped by both refinancing needs and fresh issuance across the region.
