GCC Income Market Sees Strong Growth in Primary Issuances
Surge in GCC Issuances Drives Market Expansion
The GCC income market saw $147.9 billion in bond and sukuk issuances through 296 deals in 2024. This marked a 55.1% rise compared to the previous year, according to Kuwait Financial Centre (Markaz). Consequently, investor confidence continues to strengthen.
Saudi Arabia Leads GCC Income Market with $79.5B in Issuances
Saudi Arabia led the GCC income market, raising $79.5 billion through 79 issuances in 2024. This marked a 51.2% increase from $52.5 billion in 2023. As a result, the kingdom accounted for 53.7% of total issuances.
UAE and Qatar Follow with Strong Issuance Volumes
The UAE ranked second, issuing $38.5 billion through 109 issuances, covering 26% of the market. Meanwhile, Qatar followed with $15.8 billion raised through 74 issuances, representing 10.7% of the total. These nations continue to attract strong investor interest.
Bahrain and Kuwait Show Impressive Growth in Issuances
Bahraini issuers raised $6.9 billion through 10 issuances, marking a 29.1% increase over 2023. Similarly, Kuwait posted the largest year-over-year growth, with issuances surging 358.6% to $3.9 billion. This remarkable growth highlights rising demand.
Oman Records the Lowest Issuance Value
Oman recorded the lowest issuance value, raising $3.4 billion through 15 issuances. This accounted for 2.3% of total GCC issuances in 2024. Despite the smaller share, Omani issuances remain stable.
GCC Corporate Issuances Grow by 45.5%
Corporate primary issuances in the GCC rose 45.5% from 2023, reaching $79.7 billion in 2024. Corporate issuances accounted for 53.9% of total issuances, slightly lower than 57.5% in 2023. This sector remains a key driver of market expansion.
Government-Related Corporate Entities Raise $17.4B
Government-related corporate entities issued $17.4 billion in 2024, representing 21.7% of all corporate issuances. Consequently, these entities continue to play a crucial role in the market’s growth.
GCC Sovereign Issuances Surge by 68.2%
GCC sovereign primary issuances surged by 68.2%, raising $68.2 billion in 2024. Sovereign issuances represented 46.1% of total issuances. Clearly, governments remain significant market participants.
Conventional Issuances Increase by 79.4%
Conventional issuances in the GCC income market surged by 79.4% in 2024 compared to 2023. A total of $78.9 billion was raised through conventional issuances, showing strong investor confidence. Thus, demand for conventional instruments remains high.
GCC Income Market Poised for Further Growth
With strong participation, the GCC income market continues expanding. Experts anticipate further growth in bond and sukuk issuances. Therefore, the market outlook remains positive.