GCC bonds and sukuk issuances slump 22% in Q1 to $28.3bln

GCC bonds and sukuk issuances slump 22% in Q1 to $28.3bln

Primary issuances of Bonds and Sukuk in the GCC amounted to $28.3 billion in the first three months of 2023 compared to $36.3 billion raised during the same period in 2022, a decline of 22.1% year-on-year, Markaz said in its research report titled “GCC Bonds and Sukuk Market Survey for Q1-2023”.

In terms of the number of issuances, there were 62 primary debt issuances in the GCC during Q1-2023 compared to 76 issuances for the same period in 2022.

Geographical allocation

Saudi-based issuers led the GCC Bonds and Sukuk market during Q1 2023, raising a total of $21.3 billion, representing 75.4% of the total value raised in the GCC, followed by the UAE entities with 19.9% of the total primary issuances or equivalent to $5.6 billion.

Qatar entities raised a total of $0.9 billion representing 3.2% of the total primary debt issuances while Kuwaiti issuers raised a total of $0.4 billion in primary debt, representing 1.6% of all issuances. There has not been any debt issuance by Bahrain or Oman entities during Q1 2023.

Sovereign vs Corporate

Sovereign issuances by GCC entities made up 60.2% of the total value of GCC primary issuances during Q1 2023, amounting to $17.0 billion and down 21.2% year-on-year from its