The first half of 2025 saw a significant boom in MENA bond sales, climbing to a record $86.8 billion, marking a 17% increase from the previous year, as reported by Zawya, using data from LSEG.
Saudi Arabia led the charge, accounting for 2% of issued bonds, followed closely by the UAE and Qatar with 25% and 8%, respectively.
This surge underscores the region’s pivot towards diversification, leveraging both sovereign and corporate debt channels to bolster capital.
HSBC Holdings claimed the top spot among bookrunners, handling 52 bond deals worth $8.9 billion, effectively capturing a 10% market share. The figures are a testament to their strategic focus on the Middle East and Asia, with HSBC utilising its stronghold in European debt markets to boost its presence in MENA.
Diversity in debt issuance was a standout theme, with a mix of corporates, sovereigns, and banks entering the fray. Sovereign issuers like Saudi Arabia launched significant debut USD sukuk offerings, including noteworthy entrants like Ma’aden and the Saudi Real Estate Refinance Company. Meanwhile, in the UAE, conglomerates such as Mubadala and Masdar demonstrated robust market activity, underpinning the region’s dynamic economic environment.
Egypt’s return to the debt markets with a new bond issuance, alongside Qatar’s $3 billion bond launch in February, showcased the region’s vibrancy and unwavering investor interest, despite the lingering geopolitical shadows. The Tier 1 capital market also saw enhanced activity with notable sukuk and Formosa transactions, indicating growing sophistication and appetite for diverse funding sources.
Islamic finance, particularly sukuk, played a crucial role, generating $32.2 billion—a 14% rise compared to the previous year—highlighting the persistent allure and stability of Islamic bonds amidst evolving market regulations. Standout issues included ADNOC’s entry with a $1.5 billion sukuk, the largest AA-rated corporate sukuk globally, underscoring the UAE’s commitment to innovative financial instruments.
Despite geopolitical uncertainties, the steady credit fundamentals of GCC countries continue to draw international investors, reinforcing the region’s resilience against global market shifts.
