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 147.9 billion through 296 issuances during 2024, a 55.1% increase from the last year. The total value of primary issuances during the last quarter of 2024 was USD 21.2 billion compared to USD 15.9 billion during the last quarter of 2023.

 

Issuances by Geography: Saudi-based issuances led the GCC during 2024, raising USD 79.5 billion through 79 issuances, up from USD 52.5 billion in 2023, an increase of 51.2%, and representing 53.7% of issuances during the year. UAE-based issuances ranked second, with USD 38.5 billion through 109 issues, representing 26.0% of the market, and an increase of 28.1% from the previous year. Qatari entities were the third largest issuers in terms of value, with USD 15.8 billion issued through 74 issuances, representing 10.7% of the issuances over the year. Bahraini issuers follow, with a total issuance size of USD 6.9 billion through 10 issuances, a 29.1% increase from the previous year. Kuwaiti issuances recorded the largest year-over-year growth, a 358.6% increase from the previous year, recording a total value of USD 3.9 billion through 9 issuances. Omani entities recorded the lowest value of issuances during the year, with USD 3.4 billion raised through 15 issuances, representing 2.3% of issuances.

 

Sovereign vs. Corporate: Total GCC corporate primary issuances increased by 45.5% from 2023, amounting to USD 79.7 billion raised, compared to USD 54.8 billion raised in 2023. Corporate issuances represented 53.9% of total issuances for the year, following the same trend as in 2023, where corporate issuances represented 57.5% of total issuances. Government related corporate entities raised a total of USD 17.4 billion in 2024, representing 21.7% of all corporate issuances. Total GCC sovereign primary issuances increased by 68.2% in 2024, raising USD 68.2 billion throughout the year, representing 46.1% of total issuances.

 

Conventional vs. Sukuk: Conventional issuances increased by 79.4% in 2024 compared to 2023, raising a total of USD 78.9 billion for the year. Sukuk issuances increased by 34.4% in 2024, resulting in a total value of USD 69.0 billion for year. As for issuer preferences, 2024 saw an increased appetite for conventional bond issuances in the GCC, representing 53.3% of total issuances for the year, compared to 46.1% in 2023. This contrasts with 2023, which saw more Sukuk issuances (53.9% of all issuances in 2023 vs 46.7% in 2024).

 

Sector Segmentation: Government issuances led the bond and sukuk issuances in 2024, with total value of USD 68.2 billion through 46 issuances representing 46.1% of total issuances. The financial sector follows, with USD 51.3 billion through 203 issuances, representing 24.7% of total issuances. This is an increase in both the size and the number of issuances for both the sectors when compared to 2023. The energy sector follows, with USD 20.3 billion through 28 issuances, with the remaining sectors together representing a small portion of total issuance (5.51%).

 

Maturity Profile: In 2024, primary issuances with less than 5-year tenors represented 36.5% of GCC debt capital markets with a total value amounting to USD 54.0 billion through 215 issuances. Primary issuances with 5–10-year tenors followed, raising USD 51.3 billion through 43 issuances, representing 34.7% of total issuances. Primary issuances with 10–30-year tenors, represented 22.2% of GCC debt capital markets with a total value of USD 32.8 billion through 20 issuances during the year. One issuance came in with a maturity greater than (“GT”) 30 years, with a value of USD 2 billion, compared to no issuances in that maturity bucket for 2023. Finally, perpetual issuances saw an increase in both the size and number of issuances when compared to 2023, with a total value of USD 7.8 billion through 17 issuances (2023: USD 4.2 billion through 11 issuances).

 

Issue Size Profile: During 2024, GCC primary issuances ranged in size from USD 4.0 million to USD 12.6 billion. Issuances with issue size of USD 1 billion or greater raised the largest amount, totaling USD 69.3 billion through 43 issuances and representing 46.9% of the total amount issued in the GCC. Issuances sized between USD 500 million and USD 1 billion followed, with a total issuance size of USD 50.5 billion through 59 issuances. The highest number of issuances was under USD 100 million issue size, where there were 129 issuances that raised a total amount of USD 7.2 billion during 2024.

Currency Profile: US Dollar-denominated issuances led the GCC Bonds and Sukuk primary market in 2024, raising a total of USD 99.7 billion through 190 issuances, representing a substantial 66.9% of the total value raised in primary issuances during the year. The second largest issue currency was the Saudi Riyal (SAR), where SAR denominated issuances raised a total of USD 33.9 billion through 21 issuances,

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About Kuwait Financial Centre “Markaz”

Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.41 billion (USD 4.57 billion) as of 31 December 2024.  Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.

For further information, please contact:
Sondos S. Saad
Corporate Communications Department
Kuwait Financial Centre K.P.S.C. "Markaz"
Email: ssaad@markaz.com