Saudi Arabia emerged as the leading issuer in the Gulf Cooperation Council (GCC) bond market during the first half of 2024, raising $37 billion through 44 issuances. This marks a 12.5% increase from the same period last year and represents 49% of the total new supply of GCC bonds and sukuk.
The Markaz GCC Bonds and Sukuk Market Report indicated that the overall value of GCC primary issuances reached $75.5 billion during this period, up 38% from $54.8 billion in the first half of 2023. Saudi Arabia’s Vision 2030 includes several megaprojects requiring substantial funding, which drives the demand for additional financial resources beyond traditional deposit growth.
The Kingdom’s ambitious projects necessitate accessing international debt markets, with significant support from the central government and related entities. This strategic move aims to sustain the financing needs of Vision 2030 while maintaining healthy bank balance sheets.