Saudi Arabia Leads GCC in Bond Maturities, Projected at $168bn by 2029

This surge follows the approval of significant regulatory reforms by Saudi Arabia’s Capital Market Authority in November. The changes aim to revamp the sukuk and debt instrument market by simplifying requirements and streamlining processes.

The UAE and Qatar will also see substantial bond maturities, projected at $153.2 billion and $79.5 billion, respectively. In the UAE, most of these maturities—around $120 billion—will come from corporate issuances. Kuwait, with minimal government bond issuances, is expected to have the smallest maturities in the region, totaling just $15.1 billion.

The report highlights that sovereign bond maturities in the GCC are expected to reach $232 billion between 2025 and 2029, while corporate bond maturities will total $235 billion. Banks and financial sectors in the region face $169.9 billion in maturities, making up 72.3% of corporate maturities.

As of mid-December 2024, the value of bond and sukuk issuances in the GCC has surged to $182.7 billion, up from $116.2 billion in 2023. This increase is driven by a 48.5% rise in corporate issuances, which reached $105.4 billion in 2024.

Despite global market trends, Kamco Invest notes that the GCC's relatively low government borrowing, strong credit profiles, and substantial sovereign wealth funds position the region favorably, helping to mitigate potential negative impacts from rising global debt levels.