Saudi Arabia’s Dominance in GCC Debt Market

In the first half of 2025, Saudi Arabia maintained its position as the leading borrower in the Gulf Cooperation Council (GCC) debt market. Despite a significant year-on-year decline of nearly 20% in debt issuance, the kingdom raised $47.93 billion. This accounted for 52.1% of the total debt issuances in the region, underscoring Saudi Arabia’s continued influence in the GCC financial landscape.

Regional Debt Issuance Overview

The GCC collectively issued $92.04 billion in debt during this period. Following Saudi Arabia, other member states such as the UAE, Qatar, Bahrain, Kuwait, and Oman contributed to the remaining debt issuances. The figures highlight a dynamic financial environment within the GCC, with varying levels of participation from each country.

Shift Towards Conventional Bonds

A notable trend during this period was the increased preference for conventional bonds over other financial instruments. This shift was driven by a surge in corporate activity across the Gulf’s maturing debt landscape. The preference for conventional bonds indicates a strategic move by corporations to leverage stable and predictable financial products amidst evolving market conditions.

Implications for GCC Financial Markets

The data from H1 2025 reflects broader economic trends within the GCC. Saudi Arabia’s leading role and the overall issuance figures suggest robust financial activity despite global economic challenges. The preference for conventional bonds may also signal a cautious approach by investors and corporations, aiming to mitigate risks while capitalizing on growth opportunities within the region.