GCC Bonds and Sukuk Market Survey – H1 2020

Executive Summary

The GCC Bonds and Sukuk market has so far witnessed notable activity in the first half of the year increasing 9% year-on-year to reach a total of USD 70.7 billion in primary issuances (excluding issuances by GCC Central Banks).

Although primary issuances of debt were subdued during the first quarter due to the implications and uncertainty surrounding the outbreak of Covid-19, issuing activity has picked up since and is evident by the value of issuances raised by Sovereign GCC entities, which amounted to USD 42.3 billion for the first half of 2020. Sovereign issuances by Saudi Arabia, Qatar and the Emirate of Abu Dhabi raised a combined USD 27.0 billion between them alone in April 2020.

Conventional bonds continue to be the preferred type of primary issue within the GCC market with USD 55.5 billion worth of issuances in H1-2020, whereas Sukuk issuances raised a total of USD 15.2 billion during the same period.