RIYADH: According to a recent analysis, the Gulf Cooperation Council nations made up more than 35 percent of all emerging-market US dollar debt issued in the first quarter of this year, excluding China. This represents a significant rise from around 25 percent in 2024. As regional governments and corporations increasingly look to debt capital markets for funding diversification, project finance, and budget support amid fiscal pressures and global economic uncertainty, Fitch Ratings’ most recent analysis projects that the share will continue to rise through 2025 and 2026.
According to the research, at the end of the first quarter, the GCC DCM’s total value across all currencies had surpassed $1 trillion, representing a 10% year-over-year rise. In the first three months of the year, issuance totalled $89 billion, up 11% from the previous quarter but down 3% from the same time in 2024. Fitch stated that “a healthy pipeline” is growing, bolstered by robust regional and Islamic investor liquidity, notwithstanding a halt in activity since early April.
According to the research, “the maturity, depth, and credit profile of the GCC DCM remain fragmented among its six member countries, with Saudi Arabia and the United Arab Emirates having the most mature credit profiles.” “The absence of a connection to global central securities depositories like Euroclear or Clearstream partially prevents foreign investors from participating in local currency DCMs in Kuwait, Qatar, Bahrain, and Oman,” the report continued.
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