KSA Set to Lead GCC Debt Maturities: Kamco Invest

The GCC region is expected to see elevated levels of fixed-income maturities over the next five years, driven primarily by Saudi Arabia and the UAE, a new analysis showed.

In its latest report, Kamco Invest said fixed-income maturities in Saudi Arabia are projected to total US$174.5 billion between 2026 and 2030, closely followed by the UAE at US$171.8 billion.

Saudi Arabia’s debt market has recorded robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of elevated interest rates.

In October, Kuwait Financial Center — also known as Markaz — said Saudi Arabia dominated the GCC’s primary debt market in the third quarter, raising US$20.32 billion through 36 issuances, a 62.7 percent year-on-year increase in value.

“The bulk of the maturities in Saudi Arabia are for bonds and sukuk issued by the government at US$106.4 billion, while in the case of the UAE, the lion’s share of maturities are for instruments issued by corporates at US$136.2 billion,” said Kamco Invest.

Over the next five years, fixed-income maturities in Qatar are expected to reach US$85.6 billion, while Kuwait, Bahrain and Oman are each projected to record maturities of around US$25 billion.

Citing Bloomberg data, the report showed that GCC sovereign maturities stand at US$244.8 billion over the 2026–2030 period, while corporate maturities are higher at US$263.3 billion.

“Both bond and sukuk maturities are expected to remain elevated starting from 2026 until 2030 and then gradually taper for the rest of the tenor. The higher maturities during the next five years reflects deficit financing issuances from GCC governments as well as investment and refinancing related issuances from the corporates,” said Kamco Invest.

The report added that the majority of maturities are denominated in US dollars, accounting for 64.7 percent, followed by local-currency issuances in Saudi riyals and Qatari riyals at 10.6 percent and 6.3 percent, respectively.

Owing to the strong credit profiles of GCC governments, most maturities fall within the high investment-grade category. A-rated instruments account for US$208.7 billion, while total investment-grade maturities stand at US$239.1 billion.

In terms of instruments, conventional bonds dominate, with maturities of US$317.6 billion over the next five years, compared with US$190.5 billion for sukuk. Corporate bond maturities, at US$173.4 billion, exceed government bond maturities of US$144.2 billion.

By sector, banks and other financial services firms account for US$210.4 billion in maturities through 2030, representing 79.9 percent of total corporate maturities and 41.4 percent of overall GCC maturities. The energy sector follows with US$21.8 billion, or 8.3 percent, of corporate maturities, while utilities and industrials account for US$13.6 billion and US$5.4 billion, respectively.

Real estate maturities are concentrated mainly in the UAE and Saudi Arabia, at US$11.2 billion and US$4.3 billion, respectively, through 2030.

Issuances in 2025

Aggregate bond and sukuk issuances in the GCC reached US$206.6 billion through the third week of December 2025, broadly unchanged from US$206.8 billion in the same period a year earlier.

However, issuance patterns shifted markedly. Government issuances declined sharply to US$77.9 billion in 2025, from US$98.6 billion in 2024, while corporate issuances rose to a record US$128.6 billion, up from US$108.2 billion.

In terms of type of issuances, sukuk issuances witnessed a sharp decline during 2025, whereas bond issuances showed a healthy growth.

“Aggregate GCC bond issuances stood at US$125.2 billion in 2025, the highest on record, compared to US$106.2 billion during 2024, whereas sukuk issuances declined by 19.1 percent to reach US$81.4 billion this year as compared to issuances of US$100.6 Bn during 2024,” said Kamco Invest.

Despite an 18.3 percent decline, Saudi Arabia remained the region’s largest fixed-income issuer, with total issuance of US$82.0 billion in 2025, down from US$100.3 billion the previous year.

Issuances from Qatar fell 21.7 percent to US$22.1 billion, while the UAE recorded modest growth, with total issuance rising to US$64.9 billion from US$63.4 billion. Kuwait posted the sharpest increase, with issuance surging to US$20.5 billion from US$2.6 billion in 2024 following the approval of its debt law.

Green issuances

Green-instrument issuance in the GCC rose sharply in 2025, though it remained below the record levels seen in 2023. Total green issuance reached US$12.5 billion, up from US$4.6 billion in 2024 but below US$17.3 billion recorded in 2023.

The UAE led the region with US$5.6 billion in green issuance, compared with US$3.8 billion a year earlier. Saudi Arabia followed with US$5.1 billion, after recording no green issuances in 2024.

Green sukuk are Shariah-compliant instruments designed to finance environmentally sustainable projects, including renewable energy, clean transportation and climate-resilient infrastructure.

Outlook

Kamco Invest expects higher issuance levels in 2026, particularly among GCC countries facing fiscal deficits. The UAE and Qatar are also projected to see elevated corporate issuance.

A potential decline in interest rates could further support issuance activity, especially early in the year, as borrowers seek to lock in lower funding costs.

“Maturity refinancing is expected to result in approximately US$85.4 billion in issuances during the year, while government deficit financing led by lower average oil prices would also contribute to the overall trend during the rest of the year,” the report said.

Based on IMF forecasts, deficit financing could result in issuance of close to US$60 billion in 2026, it added.