The UAE debt capital market (DCM) posted a 13.1 per cent rise to reach $294.4 billion by the end of Q3, 2024, rating agency Fitch said.
The UAE was also the second-largest issuer of ESG bonds and sukuk in emerging markets outside of China, after Brazil, during the first nine months of this year.
“This growth [in debt capital market] underscores the country’s expanding financial landscape and its strategic positioning in the sukuk market,” Bashar Al Natoor, Managing Director & Global Head of Islamic Finance at Fitch Ratings, told WAM.
He said Sukuk had a share of 20 per cent of the total DCM in the UAE, with the rest in bonds at Q3-end.
“The UAE is a pivotal player in the global sukuk market, holding a 6.6 per cent share of the global outstanding sukuk,” Al Natoor said.
The surge in the debt capital market places the UAE fourth globally in all currencies, after Malaysia, Saudi Arabia, and Indonesia.
Furthermore, the UAE is one of the largest US dollar debt issuers in emerging markets (excluding China), with a share of 8.9 per cent of the total in H1, 2024, only behind Saudi Arabia and Brazil.
“Regionally, the UAE holds the second-largest share of the total GCC outstanding sukuk at 16.2 per cent, after Saudi Arabia’s 71 per cent share,” Al Natoor said.
On the issuance side, Al Natoor observed that while sukuk issuance in the UAE amounted to $9.9 billion in the first nine months of 2024, down by 13 per cent YoY, it is noteworthy that this decline is less steep compared to the 25 per cent drop in bond issuance over the same period.
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