RIYADH: The Gulf Cooperation Council's debt capital market is set to exceed $1.25 trillion in 2026 as project funding and government initiatives fuel a 13.6 percent expansion, according to Fitch Ratings.
The region is set to remain one of the largest sources of US dollar debt and sukuk issuance among emerging markets , according to the agency, which also flagged cross-sector economic diversification, refinancing needs, and funding for deficits as drivers behind the growth.
The Gulf’s debt capital markets — which stood at $1.1 trillion at the end of the third quarter of 2025 — have evolved from primarily sovereign funding tools into increasingly sophisticated financing means, serving governments, banks, and corporates alike.
As diversification agendas accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, strengthening the GCC’s role in emerging-market capital flows.
The report noted that the market is expected to be further supported by forecasted lower oil prices, averaging $63 per barrel in 2026 and 2027, and anticipated US Federal Reserve rate cuts to 3.25 percent and 3 percent in those respective years.
