Value of GCC bonds down in first quarter

• Total value falls 7% against 2024
• Saudi value drops almost one-fifth
• Kingdom still dominant issuer

The value of bonds issued by the six-nation Gulf Cooperation Council (GCC) slumped by 7 percent in the first quarter of 2025 following a steep fall in Saudi Arabia, according to a Kuwaiti think-tank.

The total value of bonds and Islamic sukuk issued by Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman was $51.5 billion in the first quarter of this year, against $55.5 billion in the first quarter of 2024, Markaz financial services centre said.

Saudi Arabia was nonetheless the dominant issuer in the first quarter, with a total value of nearly $30 billion, Markaz said in a report on Sunday.

However, the value of the 46 Saudi issuances was down by nearly a fifth year-on year but accounted for 60 percent of the total value of bonds and sukuk issued by the GCC.

The UAE was the second largest issuer this year, with a value of $10 billion, an increase of 61 percent year-on year.

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Qatar issued $7 billion while Bahrain and Kuwait raised $1.5 billion and $1.4 billion respectively. Oman issued $260 million this year, the report said.

A breakdown showed GCC conventional bond issuance reached $34 billion and sharia-compliant sukuk nearly $18 billion in the first quarter.

A Saudi think-tank said last month the kingdom is expected to borrow nearly $69 billion in 2025-2026 to cover a fiscal deficit and fund mega projects.