Daijiworld Media Network- Riyadh

Riyadh, Aug 7: Saudi Arabia has once again emerged as the Gulf Cooperation Council’s (GCC) top borrower in the first half of 2025, raising a substantial $47.93 billion through bonds and sukuk, despite a near 20 percent year-on-year decline in overall issuance volume. This development was highlighted in a detailed report released by the Kuwait Financial Centre, Markaz.

While the Kingdom's borrowing figures dropped from $59.73 billion in the same period last year, it continued to dominate the region’s debt market, accounting for over 52 percent of the total issuances across the GCC. Saudi Arabia’s stronghold was maintained through 71 separate issuances.

Following closely was the United Arab Emirates, which raised $24.03 billion via 69 issuances, reflecting a 22.2 percent growth from the previous year. Qatar reported $10 billion in debt issuance, Bahrain secured $5.62 billion, Kuwait issued $3.39 billion, and Oman trailed with $1.08 billion.

Regionally, the total debt issuance in the GCC stood at $92.04 billion from 215 deals in H1 2025 — a decline of 5.5 percent compared to the previous year.

The report also revealed changing dynamics in debt instrument preferences. Conventional bonds overtook sukuk, comprising 56.1 percent of the region’s total debt issuance. Conventional debt rose to $51.61 billion, while sukuk fell to $40.43 billion, marking an 18.2 percent decline.

The US dollar continued to dominate the currency landscape, with $73.1 billion worth of issuances. The Saudi riyal followed, contributing $7 billion. Other currencies made up $2 billion of the total.

Corporate sector activity remained robust, contributing $60.2 billion, which made up more than 65 percent of the total debt raised. In contrast, sovereign borrowing fell by nearly half, amounting to $31.85 billion. Financial institutions were the most active, issuing $40.1 billion, while energy and government sectors contributed $8.6 billion and $31.9 billion, respectively.

As per Fitch Ratings, total outstanding debt in the GCC has now surpassed $1 trillion, pointing towards the maturity and expansion of the region’s debt ecosystem.