RIYADH: The UAE’s debt capital market grew 3 percent year on year to about $320 billion outstanding at the end of the first half of 2026, while US dollar debt issuance reached $24 billion, according to Fitch Ratings.
US dollar issuance during the six-month period was 40 percent higher than in the second half of 2025. Fitch expects the market to expand moderately over the remainder of 2026 and in 2027, supported by funding diversification, financing needs across sectors and regulatory reforms.
Fitch forecasts consolidated UAE government debt to rise to 25 percent of gross domestic product in 2026 from 22.7 percent in 2025, while banks and corporates are expected to continue issuing opportunistically.
The UAE’s debt-market expansion comes amid continued growth in Gulf capital markets, as governments and companies turn to bonds and sukuk to diversify funding sources and meet financing needs. The development also reflects broader efforts to deepen local debt markets and strengthen the region’s access to international investors.
Sukuk accounted for 21 percent of outstanding UAE debt at the end of June, while more than 70 percent of the market was denominated in US dollars.
