GCC Bond & Sukuk Markets – 1H 2026

GCC fixed income continues to reinforce its position as a resilient, high-quality investment universe despite periods of geopolitical uncertainty. Backed by strong sovereign balance sheets, resilient banking systems and a predominantly investment-grade market, GCC credit has delivered resilient long-term performance, with GCC IG outperforming EM IG over the past five years despite tighter spreads. Meanwhile, the region's debt market continues to deepen, with USD 893bn issued over the past decade and sukuk accounting for over 30.5% of the outstanding GCC USD credit market. As spreads normalize, future returns are increasingly likely to be driven by carry and disciplined security selection rather than broad market beta.