GCC debt capital market activity set to stay strong in 2026
Debt capital market (DCM) activity in the GCC is expected to remain robust through 2026, underpinned by a strong issuance pipeline and favorable funding conditions, according to a new report by Fitch Ratings.
Outstanding GCC DCM volumes reached $1.1 trillion in the third quarter of 2025, marking a 12.7% year-on-year increase. Sukuk accounted for more than 40% of total issuances, rising nearly 22% year-on-year, outpacing the 7.2% growth in conventional bonds.
“We expect the GCC debt capital market to remain resilient into 2026, supported by robust issuance, favourable funding conditions, and a high-quality issuer base — over 81% of rated dollar sukuk are investment grade,” said Bashar Al Natoor, Fitch’s global head of Islamic finance. “However, the GCC DCM remains fragmented across its six member countries in terms of maturity, depth, and credit profile, with Saudi Arabia and the UAE the most developed, although all markets saw activity this year.”
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Muhammad Ali Bandial