With the UAE playing a crucial role in the region’s developing capital markets, GCC banks are poised to achieve yet another record in US dollar debt issuance this year. Total issuance is already close to $55 billion in 2025, which is much more than the $36 billion raised the previous year, and is predicted to reach $60 billion by the end of the year, or roughly $40 billion if certificates of deposit are excluded, according to Fitch Ratings. This increase is a result of favorable financing conditions, strong credit growth, and substantial impending maturities.
With $28.3 billion raised thus far, Saudi banks have been the most active, followed by UAE institutions with $11 billion. Kuwaiti banks issued $7 billion, while Qatari banks issued $8 billion. With certificates of deposit excluded, GCC banks have already raised $36 billion from the market, much above initial projections for the year. Senior unsecured instruments are the main focus of the UAE’s debt activities in order to diversify funding sources and refinance maturing obligations. This entails investigating the Taiwanese Formosa market through floating-rate notes and capitalizing on the demand for ESG-linked bonds and sukuk.
In 2025, UAE banks alone raised over $3.5 billion using Formosa notes, demonstrating their desire to engage a wider audience of investors. Because of strong liquidity, a strong net foreign asset position, and ongoing refinancing demand, analysts anticipate that issuance from the UAE will continue to be stable.
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