UAE’s outstanding bonds, Sukuk reach $309.4 billion by Q1 2025

Sharjah 24 – WAM: UAE's outstanding bonds and Sukuk surged to $309.4 billion by Q1 2025, marking an 8.3 percent year-on-year increase, according to Fitch Ratings.

Bashar Al Natoor, Managing Director and the Global Head of Fitch Ratings' Islamic Finance Group, told the Emirates News Agency (WAM), that the UAE's debt markets continue to witness strong growth.

He explained that this growth reflects the country's expanding financial ecosystem and strategic position in the Sukuk market. Sukuk accounted for 20.2 percent of the UAE's total outstanding debt, while the remainder was conventional bonds.

Meanwhile, new Sukuk issuance in the UAE amounted to $4.9 billion in Q1 2025—double the value issued in Q4 2024. Bond issuances stood at $24.1 billion.

Al Natoor noted that the UAE remains a key global player in the Sukuk market, accounting for 6.5 percent of total global outstanding Sukuk as of Q1 2025, ranking fourth worldwide after Malaysia, Saudi Arabia, and Indonesia.

He explained that the UAE is one of the largest US dollar debt issuers in emerging markets (excluding China), with a share of 7 percent of the total in Q1 2025, only behind Saudi Arabia, Brazil and Mexico.

Regarding ESG-related (Environmental, Social, and Governance) bonds and Sukuk, the UAE ranked third among emerging markets (excluding China) in Q1 2025, following Türkiye and the Philippines.

Regionally, he noted that the value of outstanding debt (bonds and Sukuk) across the GCC reached $1.03 trillion by the end of Q1 2025, with the UAE holding the second-largest share at 30 percent. The UAE also held the second-largest share of Sukuk in the Gulf at 15.6 percent of the total.