GCC Debt Capital Market Hits $1.1 Trillion, Outlook Remains Strong for 2026: Fitch

The Gulf Cooperation Council (GCC) debt capital market has continued its impressive growth trajectory, with outstanding volumes reaching USD 1.1 trillion by the end of the third quarter of 2025, according to Fitch Ratings. This marks a significant year-on-year increase of nearly 13%, reflecting the region’s resilient capital markets and strong investor confidence. Sukuk, or Islamic-compliant bonds, are leading this expansion, accounting for over 40% of the total market and growing at a remarkable pace of 22% compared to 7% for conventional bonds. Fitch expects this momentum to continue into 2026, supported by a healthy issuance pipeline, favourable funding conditions, and a robust issuer base, with over 81% of rated dollar sukuk in the GCC classified as investment grade. The report highlights that both sovereigns and corporates are increasingly turning to the debt markets to finance development projects, refinance maturing debt, and support economic diversification initiatives. While the market remains fragmented across member states, the overall outlook is positive, signalling the GCC’s growing role as a leading hub for sustainable and structured finance in the Middle East.