The UAE’s bond and Sukuk market experienced notable growth in Q1 2025, with outstanding debt soaring to $309.4 billion, a rise of 8.3% compared to the same period last year, according to Fitch Ratings.
Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, emphasized the continued expansion of the UAE’s debt markets. This surge reflects the nation’s growing financial ecosystem and its strategic role in the global Sukuk market. As of Q1 2025, Sukuk accounted for 20.2% of the UAE’s total debt, with the remainder being conventional bonds.
New Sukuk issuances in the UAE reached $4.9 billion in Q1 2025, doubling from the previous quarter, while bond issuances amounted to $24.1 billion. Al Natoor also highlighted the UAE's significant position globally, with the country holding 6.5% of total global Sukuk as of Q1 2025, ranking fourth worldwide after Malaysia, Saudi Arabia, and Indonesia.
In addition, the UAE remains one of the largest issuers of US dollar-denominated debt in emerging markets, holding a 7% share of the global market in Q1 2025, behind only Saudi Arabia, Brazil, and Mexico.
The UAE is also making strides in Environmental, Social, and Governance (ESG) debt, ranking third among emerging markets (excluding China) for ESG-related Sukuk and bonds, trailing Türkiye and the Philippines.
Regionally, the value of outstanding GCC debt reached $1.03 trillion by the end of Q1 2025, with the UAE holding the second-largest share at 30%, and a notable 15.6% share in Sukuk.
News Source: Emirates News Agency
