GCC Sukuk Issuance Falls 29.5% in H1 2026 as Bonds Surge: Markaz

Primary issuances of bonds and sukuk across the Gulf Cooperation Council rose 6.50% to USD 102.69 billion in the first half of 2026, spread across 161 deals, according to a report published by Kuwait Financial Centre (“Markaz”) covering H1 2026. The total is up from USD 96.42 billion in H1 2025, per Markaz. The mix behind that headline number shifted sharply: conventional bond issuance climbed 33.3% to USD 73.63 billion, while sukuk issuance fell 29.5% to USD 29.06 billion, leaving sukuk at 28.3% of GCC primary debt issuance by value in H1 2026, according to Markaz.

The divergence means the region raised more debt overall while raising materially less of it in Sharia-compliant form. Arab News reported the same USD 102.69 billion total and 6.5% rise in a July 26 article, quoting Markaz directly: “Conventional issuances increased by 33.3 percent in the first half of 2026 compared to the first half of 2025, reaching $73.63 billion.”

Saudi Arabia Leads a Mixed Country Picture

Saudi Arabia was the largest issuer in the bloc, raising USD 49.34 billion through 58 issuances in H1 2026, a 1.6% increase over H1 2025 and 48% of total GCC issuance value, according to Markaz. The UAE followed with USD 25.45 billion through 58 issuances, 24.8% of the market, down 6.8% year on year, per Markaz.

Qatar’s issuance rose 32.3% to USD 12.4 billion across 18 deals, 12.1% of the total, while Kuwait’s issuance more than doubled, up 128.6% to USD 8.67 billion through 14 issuances, according to Markaz. Bahrain’s issuance fell 32.8% to USD 4.03 billion across five deals, Oman issued USD 1.82 billion through six issuances, and the Arab Energy Fund, a supranational issuer, raised USD 1.00 billion through two issuances, per Markaz. The Halal Times has separately covered the outlook for Bahrain’s Islamic finance assets.

Sukuk’s Shrinking Share of GCC Debt

Sukuk accounted for 28.3% of total GCC primary bond and sukuk issuance value in H1 2026, according to Markaz, which reported the sukuk total falling while the overall market grew. The pullback is consistent with a trend The Halal Times reported in July, when S&P Global Ratings found that Malaysia drove global sukuk growth in the first half of the year while GCC issuance slowed. Markaz’s H1 2026 report now supplies a regional number for that slowdown: a 29.5% drop to USD 29.06 billion. For investors weighing exposure to the asset class, The Halal Times has separately reviewed the platforms available for sukuk investment.

Corporate Borrowing and Sector Mix

Corporate borrowers accounted for USD 66.67 billion of GCC issuance in H1 2026, 64.9% of the total, up 8.4% year on year, according to Markaz. Government-related corporate entities within that total raised USD 20.37 billion through 15 issuances, up 81.4% from H1 2025, while sovereign issuance rose 3.1% to USD 36.01 billion, 35.1% of the total, per Markaz.

By sector, financial institutions issued USD 41.70 billion through 104 deals, 40.6% of total value, up 2.4% year on year, Markaz said. Government issuance totaled USD 36.01 billion through 29 issuances, 35.1% of the total, and energy raised USD 13.72 billion through 11 issuances, 13.4% of the total, with other sectors making up the remaining 11.0%, per Markaz.

More Issuance Carried a Rating

A larger share of the market came to investors with a credit rating attached: rated issuances made up 75.1% of total issuance value in H1 2026, up from 69.9% in H1 2025, according to Markaz. Investment-grade paper accounted for 69.8% of total value, while sub-investment-grade issuance made up 5.3%, per Markaz’s report. Markaz’s figures run through June 30, 2026, so whether sukuk’s 28.3% share of GCC primary debt marks a floor or slips further won’t be clear until the H2 2026 numbers land.

Frequently Asked Questions

How much did GCC sukuk issuance fall in H1 2026?

Sukuk issuance across the GCC dropped 29.5% year over year to USD 29.06 billion in the first half of 2026, according to Kuwait Financial Centre (Markaz), even as total bond and sukuk issuance in the region grew.

What share of GCC debt issuance is sukuk now?

Sukuk made up 28.3% of GCC primary bond and sukuk issuance value in H1 2026, per Markaz’s H1 2026 fixed income report, which recorded sukuk volume falling 29.5% while the overall market grew 6.50%.

Which GCC country issued the most bonds and sukuk in H1 2026?

Saudi Arabia led with USD 49.34 billion raised through 58 issuances, 48% of total GCC issuance value, according to Markaz.

Did total GCC bond and sukuk issuance grow in H1 2026?

Yes. Total GCC primary issuance rose 6.50% to USD 102.69 billion across 161 deals in H1 2026, driven partly by a 33.3% jump in conventional bond issuance to USD 73.63 billion, according to Markaz.

Why did sukuk issuance decline in the GCC in H1 2026?

Markaz’s published H1 2026 figures don’t include an explanation for the decline. According to Markaz, GCC sukuk issuance fell 29.5% to USD 29.06 billion in H1 2026 while conventional bond issuance rose 33.3% to USD 73.63 billion over the same period.