Latest news with #KuwaitFinancialCentre
Time of India
5 days ago
- Business
- Time of India
Saudi Arabia remains GCC's biggest borrower in H1 2025 despite 20% YoY drop in debt issuance
The Saudi riyal was the second most-used currency after the US dollar in GCC debt markets, raising $7 billion from eight issuances In the first half of 2025, Saudi Arabia retained its position as the top issuer in the Gulf Cooperation Council's debt markets, raising $47.93 billion through bonds and sukuk. While this figure reflects a nearly 20 percent drop from the same period last year, the Kingdom still commanded over half of the region's total issuances. A new report by Kuwait Financial Centre 'Markaz' provides a detailed view of the GCC's evolving fixed income landscape, highlighting shifting issuance preferences, currency trends, and sector-wise activity. Saudi Arabia at the Forefront – But Issuances Decline According to a comprehensive report by Kuwait Financial Centre (Markaz), Saudi Arabia raised $47.93 billion from 71 bond and sukuk issuances during the first six months of 2025. This accounted for 52.1 percent of total debt activity across the GCC, confirming the Kingdom's dominant role in the region's primary debt market. However, this volume represents a 19.8 percent decrease compared to $59.73 billion raised during the same period in 2024. Despite the drop, Saudi Arabia maintained a significant lead over its regional peers. Here's how other GCC countries performed in the first half of 2025, based on total issuance volume and market share: Saudi Arabia : Raised $47.93 billion through 71 issuances Accounted for 52.1% of total GCC debt issuance Down from $59.73 billion in H1 2024 (-19.8% year-on-year) United Arab Emirates (UAE) : Secured $24.03 billion from 69 issuances Represented 26.1% of the regional total Marked a 22.2% increase from the previous year Qatar : Raised $10 billion across 58 issuances Captured 10.9% of total GCC issuance Bahrain : Collected $5.62 billion from 7 issuances Made up 6.1% of the regional total Reflected a 49.7% increase year-on-year Kuwait : Issued $3.39 billion through 4 transactions Accounted for 3.7% of the GCC total Saw a 48% year-on-year increase Oman : Recorded $1.08 billion from 6 issuances Held the lowest market share at 1.2% Across the region, GCC-wide debt issuance totaled $92.04 billion from 215 issuances in H1 2025, down 5.5 percent year-on-year from H1 2024. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When Knee Pain Hits, Start Eating These Foods, and Feel Your Pain Go Away (It's Genius) Click Here Undo This regional total reflects the combined efforts of sovereigns, corporates, and financial institutions to tap into capital markets amid changing macroeconomic conditions. In its December review, Fitch Ratings noted that total outstanding debt in the GCC surpassed $1 trillion, a milestone reflecting the maturing debt ecosystem in the Gulf. Changing issuance preferences – rise of conventional debt Markaz highlighted a shift in issuance trends within the GCC in early 2025. Conventional bonds made up 56.1 percent of total debt instruments, marking a reversal from H1 2024, where sukuk (Sharia-compliant bonds) held a majority share. In terms of value: Conventional debt issuance rose 7.8 percent year-on-year to $51.61 billion. Sukuk issuances, in contrast, declined 18.2 percent, amounting to $40.43 billion. For context, sukuk are Islamic financial certificates that provide partial ownership in an asset pool and are structured to comply with Islamic law, serving as an alternative to interest-bearing bonds. The increasing appeal of conventional bonds in 2025 appears to reflect evolving investor appetite and greater flexibility in issuance terms. The GCC debt market is continuing to diversify in both format and funding sources. Currency landscape – USD dominates, riyal follows The US dollar remained the preferred currency across the GCC primary market. In the first half of 2025: USD-denominated issuances reached $73.1 billion across 146 deals, representing 79.4 percent of total issuance volume. The Saudi riyal was the second most-used currency, with $7 billion raised from eight issuances. Currencies grouped under "other" amounted to $2 billion, of which the Hong Kong dollar contributed $682 million from 20 issuances, accounting for 0.74 percent of the region's total. A separate Fitch Ratings report from April revealed that GCC countries were responsible for over 35 percent of all emerging-market US dollar debt issued in Q1 2025, up from approximately 25 percent in 2024, excluding China. These figures underscore the continued international appeal of GCC sovereign and corporate issuances, particularly among dollar-based investors. Sector & issuer breakdown – corporates lead activity Corporate issuances surged in H1 2025, rising 67.7 percent year-on-year to reach $60.20 billion. This represented 65.4 percent of the region's total debt activity. By contrast: Government-related entities issued $11.2 billion across 11 deals, posting a modest 1.8 percent increase from the prior year. Sovereign issuances fell sharply by 48.2 percent, totaling $31.85 billion across the region. In terms of sectoral distribution: The financial sector led with $40.1 billion raised through 167 issuances, making up 43.6 percent of all activity. Government entities followed with $31.9 billion from 25 issuances. The energy sector recorded $8.6 billion from nine deals, accounting for 9.4 percent of the total. Remaining sectors together comprised 12.5 percent of total issuance. The issuance size across the GCC ranged widely, from as little as $2 million to $5 billion, reflecting varying capital needs and issuer profiles across public and private institutions.
Arab Times
5 days ago
- Business
- Arab Times
Markaz records Total Revenue of KD 14.45 million for H1-2025
KUWAIT CITY, Aug 06: Kuwait Financial Centre 'Markaz' (KSE: Markaz, Reuters: Bloomberg: MARKAZ: KK) reported its financial results for H1-2025with a Total Revenue of KD 14.45million with an increase of 65%, as compared to KD 8.76million in H1-2024. The net profit attributable to shareholders of Markaz was KD 6.41million, compared toKD1.79million in the same period last year, and earnings per share was 13Fils for H1-2025. Mr. Diraar Yusuf Alghanim, Markaz's Chairman, stated: 'Kuwait demonstrated robust performance during the second quarter of 2025, with non-oil GDP growth estimated at around 2.5%, supported by steady expansion in real estate, manufacturing, and hospitality, while inflation remained contained near 2.3% alongside a private sector PMI of 53.9 in May. Across the GCC, economic prospects were reinforced by ongoing diversification initiatives and rising credit activity in the UAE, which helped sustain regional growth. Regional oil revenues also benefited from periodic price increases amid geopolitical tensions, supporting fiscal balances. On the global front, the IMF revised growth expectations downward due to weaker demand and continued geopolitical friction, although oil market movements offered some support to regional fiscal positions. In recognition of its institutional strength and innovative investment capabilities during this period, Markaz was honoured with five prestigious awards from EMEA Finance, Euromoney, and remain positive on the region's outlook, supported by improving financial conditions, ongoing structural reforms, and steady demand trends. Our priority continues to be the creation of long-term value for our stakeholders through disciplined execution, strategic growth, and prudent risk management. Mr. Ali H. Khalil, Markaz's CEO, stated: Markaz's Asset Management fees for H1-2025 were KD 3.94million as compared to KD 3.46million for the same period last year, reflecting an increase of 14%. Investment Banking and Advisory fees for H1-2025 were KD 0.52million as compared to KD 0.63million for H1-2024. This performance reflects the strength of our diversified portfolios and disciplined focus on consistent execution across business verticals. h1In asset management, our equity mutual funds continued to deliver stable returns amid heightened market volatility. MIDAF, Mumtaz, the Markaz Islamic Fund, and Forsa recorded returns of 8.65%, 10.45%, 18.05%, and 12.31% respectively, supported by prudent investment strategies and active portfolio management. Within investment banking, Markaz continues to reinforce its capital markets expertise and deepen long-term client relationships. The team maintains a robust transaction pipeline, with multiple active M&A mandates currently underway. Our regional and international real estate investments have remained resilient, supported by stable occupancy levels, reliable rental income, and steady collection rates. During the year, Markaz exited industrial real estate projects exceeding USD 100 million in the US and Europe, highlighting its disciplined investment approach, partnerships, and leadership in global real estate and credit strategies. Markaz also released the first annual report for its Shariah-compliant Markaz Real Estate Fund (MREF), strengthening transparency and highlighting its market leadership. Favorable demographic dynamics, sustained infrastructure spending, and broader economic diversification across the GCC continue to create attractive opportunities. Markaz is focused on providing differentiated investment offerings and maintaining strategic agility to deliver long-term value for stakeholders. Mr. Abdullatif W. Al-Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated: 'Markaz continued to strengthen its wealth management services during the second quarter of 2025. Assets Under Management (AUM) reached approximately KD 1.56billion as of 30June 2025, reflecting an [increase] of 13.14% compared to KD 1.38billion in Q2 2024. This growth is underpinned by our disciplined execution and client-focused May 2025, Markaz successfully engaged professional and qualified investors through an exclusive private markets event with BlackRock, strengthening client access to global strategies and highlighting private credit as a strategic income-focused asset class. Expanding capabilities across private markets, alternative assets, and tailored advisory services remains central to addressing clients' evolving requirements. Enhanced digital initiatives continue to strengthen the client experience and drive greater efficiency. Supported by strong relationships with institutional and high net worth clients, and solutions aligned with market dynamics, Markaz is positioned to deliver consistent investment outcomes and uphold its leadership in wealth creation.
Zawya
04-08-2025
- Business
- Zawya
Saudi Arabia tops GCC debt issuers despite 20% drop in H1 2025 issuances
Saudi Arabia remained the Gulf Cooperation Council (GCC) region's top issuer of bonds and sukuk in the first half of 2025, despite debt issuances falling 20% year-on-year (YoY), Kuwait Financial Centre (Markaz) said in a new report. Saudi companies raised $47.93 billion through 71 issuances in the first six months of 2025, down from $59.73 billion in H1 2024. The UAE secured the second spot with $24.03 billion raised through 69 issuances, an increase of 22.2% from H1 2024. Qatar followed, with $10 billion raised from 58 issuances. Bahrain recorded $5.62 billion, while Kuwait saw a 48% increase in issuance value, reaching $3.39 billion. Oman had the lowest total, raising $1.08 billion from six issuances. Total bond and sukuk activity across the GCC reached $92.04 billion through 215 issuances in the first half of the year, registering a 5.5% year-on-year decline. Corporate issuances surged by 67.7% YoY to $60.20 billion during the first six months of the year. Government-related corporations raised $11.2 billion through 11 deals, up 1.8% YoY. Conversely, sovereign debt issuance across the GCC dropped by 48.2%, totalling $31.85 billion. Conventional issuances rose 7.8% YoY to $51.61 billion in the first half, while sukuk sales declined by 18.2% YoY to $40.43 billion. The financial sector led the bond and sukuk issuances, with a total value of $40.1 billion through 167 issuances. Government issuances followed, with $31.9 billion through 25 issuances, Markaz said. GCC primary issuance size ranged from $2 million to $5 billion. US dollar-denominated issuances led the GCC bonds and sukuk primary market, raising a total of $73.1 billion through 146 issuances. The Saudi riyal emerged as the second most-used currency, with SAR-denominated offerings totaling $7 billion across eight transactions.
Zawya
04-08-2025
- Business
- Zawya
GCC fixed income market sees $92bln in primary issuances for H1
The primary debt issuances of bonds and sukuk in the GCC countries amounted to $92.04 billion through 215 issuances during the first half of the year, down 5.5% from the same period last year, where issuances in H1 2024 amounted to $97.36 billion, according to Kuwait Financial Centre (Markaz). Saudi-based issuances led the GCC during H1, raising $47.93 billion through 71 issuances, down from $59.73 billion in H1 2024 a decrease of 19.8%, and representing 52.1% of issuances during the year, stated Markaz in its Fixed Income Report. UAE- based issuances ranked second, with $24.03 billion through 69 issuances, representing 26.1% of the market, an increase of 22.2% from the same period last year. Qatari entities were the third largest issuers in terms of value, with $10 billion issued through 58 issuances, representing 10.9% of the issuances over the period. Bahraini issuers came next with a total issuance size of $5.62 billion through 7 issuances, up 49.7% increase from the same period last year. Kuwaiti issuances recorded a 48% increase from the same period last year, recording a total value of $3.39 billion through 4 issuances. Omani entities recorded the lowest value of issuances during the year, with $1.08 billion raised through 6 issuances, representing 1.2% of the total value of issuances. According to Markaz, the total GCC corporate primary issuances increased by 67.7% in H1 2025, amounting to $60.20 billion raised, compared to $35.91 billion raised in H1 2024. Corporate issuances represented 65.4% of total issuances for the first half of 2025, contrasting with the preference of issuances in H1 2024 where more sovereign entities raised capital (Corporate issuances H1 2024: 36.9%). Government related corporate entities raised $11.2 billion through 11 issuances during the year, an increase of 1.8% from H1 2024 ($11.0 billion through 10 issuances), said the report. Total GCC sovereign primary issuances decreased by 48.2% in H1 2025, raising $31.85 billion throughout the year, representing 34.6% of total issuances, it added. According to Markaz, conventional issuances increased by 7.8% in H1 2025 compared to H1 2024, raising a total of $51.61 billion for the year. Sukuk issuances, meanwhile, decreased by 18.2% in H1 2025, resulting in a total value of $40.43 billion for the year so far. As for issuance preferences, H1 2025 saw an increased appetite for conventional issuances in the GCC, representing 56.1% of total issuances for the year. This is a change in issuance preferences from H1 2024, where more Sukuk were issued than conventional bonds, it stated. Sector wise, the finance led the bond and sukuk issuances in H1 with total value of $40.1 billion through 167 issuances representing 43.6% of total issuances, followed by government issuances with $31.9 billion through 25 issuances, representing 34.6% of total issuances. This represents an increase for the financial sector (31.1%) and a decrease for government issuances (-48.2%) when compared to the same period last year. The energy sector came next with $8.6 billion through 9 issuances, representing 9.4% of total issuances, with the remaining sectors together representing a small portion of total issuance (12.5%), it added.- TradeArabia News Service Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Kuwait Times
03-08-2025
- Business
- Kuwait Times
GCC market sees $92.04bn in primary issuances in H1
KUWAIT: In its Fixed Income Report, Kuwait Financial Centre (Markaz) states that primary debt issuances of Bonds and Sukuk in the Gulf Cooperation Council (GCC) countries amounted to $92.04 billion through 215 issuances during H1 2025, a 5.5 percent decrease from the same period last year, where issuances in H1 2024 amounted to $97.36 billion. Issuances by Geography: Saudi-based issuances led the GCC during H1 2025, raising $47.93 billion through 71 issuances, down from $59.73 billion in H1 2024 a decrease of 19.8 percent, and representing 52.1 percent of issuances during the year. UAE-based issuances ranked second, with $24.03 billion through 69 issuances, representing 26.1 percent of the market, an increase of 22.2 percent from the same period last year. Qatari entities were the third largest issuers in terms of value, with $10.0 billion issued through 58 issuances, representing 10.9 percent of the issuances over the period. Bahraini issuers follow, with a total issuance size of $5.62 billion through 7 issuances, a 49.7 percent increase from the same period last year. Kuwaiti issuances recorded a 48.0 percent increase from the same period last year, recording a total value of $3.39 billion through 4 issuances. Omani entities recorded the lowest value of issuances during the year, with $1.08 billion raised through 6 issuances, representing 1.2 percent of the total value of issuances. Sovereign vs Corporate: Total GCC corporate primary issuances increased by 67.7 percent in H1 2025, amounting to $60.20 billion raised, compared to $35.91 billion raised in H1 2024. Corporate issuances represented 65.4 percent of total issuances for the first half of 2025, contrasting with the preference of issuances in H1 2024 where more sovereign entities raised capital (corporate issuances H1 2024: 36.9 percent). Government related corporate entities raised $11.2 billion through 11 issuances during the year, an increase of 1.8 percent from H1 2024 ($11.0 billion through 10 issuances). Total GCC sovereign primary issuances decreased by 48.2 percent in H1 2025, raising $31.85 billion throughout the year, representing 34.6 percent of total issuances. Conventional vs Sukuk: Conventional issuances increased by 7.8 percent in H1 2025 compared to H1 2024, raising a total of $51.61 billion for the year. Sukuk issuances, meanwhile, decreased by 18.2 percent in H1 2025, resulting in a total value of $40.43 billion for the year so far. As for issuance preferences, H1 2025 saw an increased appetite for conventional issuances in the GCC, representing 56.1 percent of total issuances for the year. This is a change in issuance preferences from H1 2024, where more Sukuk were issued than conventional bonds. Sector Segmentation: The Financial sector led the bond and sukuk issuances in H1 2025, with total value of $40.1 billion through 167 issuances representing 43.6 percent of total issuances. Government issuances follow, with $31.9 billion through 25 issuances, representing 34.6 percent of total issuances. This represents an increase for the financial sector (31.1 percent) and a decrease for government issuances (-48.2 percent) when compared to the same period last year. The energy sector follows, with $8.6 billion through 9 issuances, representing 9.4 percent of total issuances, with the remaining sectors together representing a small portion of total issuance (12.5 percent). Maturity profile: In H1 2025, primary issuances with less than 5-year tenors represented 46.9 percent of GCC debt capital markets with a total value amounting to $43.2 billion through 154 issuances. Primary issuances with 5-10-year tenors followed, raising $31.1 billion through 43 issuances, representing 33.8 percent of total issuances. Primary issuances with 10-30-year tenors represented 9.6 percent of GCC debt capital markets with a total value of $8.8 billion through 5 issuances during the year. One issuance came in with a maturity greater than (GT) 30 years with a value of $1 billion, while perpetual issuances saw an increase in both the size and number of issuances when compared to H1 2024, with a total value of $8.0 billion through 12 issuances. Issue size profile: During H1 2025, GCC primary issuances ranged in size from $2.0 million to $5.0 billion. Issuances with issue size of $1 billion or greater raised the largest amount, totaling $54.5 billion through 32 issuances and representing 59.2 percent of the total amount issued in the GCC. Issuances sized between $500 million and $1 billion followed, with a total issuance size of $27.0 billion through 44 issuances. The highest number of issuances was under $100 million issue size, where there were 105 issuances that raised a total amount of $3.2 billion during H1 2025. Currency profile: US dollar-denominated issuances led the GCC bonds and sukuk primary market again in H1 2025, raising a total of $73.1 billion through 146 issuances, representing a substantial 79.4 percent of the total value raised in primary issuances during the year so far. The second largest issue currency was the Saudi Riyal (SAR), where SAR denominated issuances raised a total of $7.0 billion through 8 issuances. As for currencies bucketed under 'Other' which totaled $2.0 billion, the Hong Kong Dollar (HKD) represented 0.74 percent of total issuances with a total value of $682 million through 20 issuances. Rating: In terms of value, a total of 74.0 percent of GCC Conventional and Sukuk bonds were rated in H1 2025 by at least one of the following rating agencies: Standard & Poor's, Moody's, Fitch and Capital Intelligence, an increase from H1 2024 (57.2 percent of all issuances rated). Issuances rated within the Investment Grade accounted for 67.7 percent of the total issuances during the year, while Sub-Investment Grade accounted for 6.3 percent of rated bonds.
