Kuwait: In its Fixed Income Report, Kuwait Financial Centre “Markaz” states that primary debt issuances of Bonds and Sukuk in the Gulf Cooperation Council (“GCC”) Countries amounted to USD 28.2 billion through 84 issuances during Q3 2024, a 14.5% increase from the same period last year. The total value of primary issuances during the first 9 months of 2024 was USD 102.7 billion compared to USD 79.3 billion during the first 9 months of 2023.

Issuances by Geography: UAE-based issuers led the GCC during Q3 2024, raising USD 11.7 billion through 28 issuances, up from USD 7.8 billion through 17 issuances in the same period last year, representing 42% of the market. Saudi-based issuers ranked second with USD 11.2 billion through 19 issuances, representing a 40% of the market. However, in the first 9 months of the year, Saudi entities led the GCC, raising a total of USD 47.8 billion through 60 issuances, comprising 47% of the total market. In the same period, UAE entities raised a total of USD 32.1 billion through 88 issuances, representing 31.3% of the market. Qatari entities were the third largest issuers in terms of value during Q3 2024 with USD 3.5 billion worth of issuances, up from USD 1 billion from Q3 2023, representing a 236% increase. Kuwaiti issuers raised USD 1.7 billion through 6 issuances, up from USD 0.3 billion from the same period last year, representing a 334% increase and representing 6% of the market. Bahraini issuers raised USD 35 million in Q3 2024 from 1 issuance representing 0.1% of the market, while Omani entities raised USD 20 million, representing 0.1% of the market.

Sovereign vs. Corporate: Total GCC corporate primary issuances increased by 233% in Q3 2024 compared to the same period in 2023, amounting to USD 26.3 billion, and bringing the total value for the first 9 months of the year to USD 59.4 billion compared to USD 39.2 billion during the same period last year. Government entities related entities raised a total of USD 12.2 billion in Q3 2024, constituting 46% of corporate issuances. Total GCC sovereign primary issuances deceased 89% in Q3 2024 compared to the same period in 2023 to reach USD 43.3 billion for the first nine months of the year compared to USD 40.1 billion.

Conventional vs. Sukuk: Conventional issuances increased by 270% in Q3 2024 compared to the same period last year, raising a total of USD 69.2 billion for the first nine months of the year. On the other hand, Sukuk issuances decreased 63% in Q3 2024, resulting in a total value of USD 33.5 billion for the first nine months of the year. Through 17 issuances, sukuks in the region raised USD 6.9 billion during Q3 2024.

Sector Segmentation: The energy sector accounted for the largest amount of primary debt issuances by value, raising a total of USD 13.1 billion, or 47% of the total value of issuances in the GCC in Q3 2024, followed by the financial sector (including quasi-government entities) that raised a total value of USD 11.5 billion, representing 41% of the total amount issued. For the first nine months of the year, government issuers led the industry with USD 43.3 billion, followed by the financial sector with USD 39.4 billion worth of issuances. 

Maturity Profile: In Q3 2024, primary issuances with less than 5-year tenors represented 36.4% of GCC debt capital markets with a total value amounting to USD 10.2 billion through 62 issuances. Primary issuances with 10–30-year tenors, represented 26% of GCC debt capital markets with a total value of USD 7.4 billion through 8 issuances during the quarter. Primary issuances with 5–10-year tenors followed, raising USD 5.9 billion through 10 issuances.

Issue Size Profile: The size of GCC Bonds and Sukuk primary issuances during the quarter ranged from USD 8.0 million to USD 2.0 billion. Issuances with principal amounts greater than or equal to USD 1 billion raised the largest amount totaling USD 14.5 billion through 9 issuances, representing 52% of the total primary issuances.

Currency Profile: US Dollar-denominated issuances led the GCC Bonds and Sukuk primary market in Q3 2024, raising a total of USD 24.8 or 88% of the total value of GCC primary issuances. This was followed by Saudi Riyal denominated issuances that raised a total of USD 900 million through 4 issuances.

Rating: In Q3 2024, a total of 79% of GCC primary Bonds and Sukuk issuances (in terms of value) were rated by either one of the following rating agencies: Standard & Poor’s, Moody’s, Fitch and/or Capital Intelligence, of which 77% were rated within the Investment Grade. In the first nine months of the year, 77% of GCC conventional and sukuk bonds were rated and 73% of issuances were investment grade