An analysis reported that the debt capital market of the UAE is expected to reach over $350 billion in 2026 and over $400 billion in the upcoming years, underpinned by robust sukuk issuance, diversification of funding, and regulatory reform.
Fitch Ratings, in a new report, indicated that the outstanding debt in the UAE had leaped to over $325 billion at the end of 2025, marking a surge of 9.3 percent over the previous year.
The stable trend of the Gulf Cooperation Council sukuk market underscores the growth of the debt markets in the region and is propelled by the domestic and foreign investors who are looking to diversify and get a stable return.
In a separate report published earlier this month, Fitch had stated that by the year 2026, the debt capital market of Saudi Arabia would be projected to go up to $600 billion in debt outstanding, which would make the Kingdom the largest issuer of US dollar debt and sukuk securities among the emerging markets.
Bashar Al-Natoor, Fitch’s global head of Islamic finance, said, “UAE’s DCM saw record high sukuk issuance in 2025, the highest-ever annual issuance. Dollar sukuk issuance rose to about 50 percent of dollar issuance, also the highest on record and up from 21.4 percent in 2024.”
He stated, “Over 85 percent of Fitch-rated sukuk in the UAE are investment-grade, with 100 percent of issuers on Stable Outlooks and no defaults. The market saw many debut sukuk issuers.”
It is projected to continue being one of the biggest issuers of debt in the emerging market and a strong sukuk hub in the world, supported by its Islamic finance ecosystem.
Among emerging markets excluding China, the UAE ranked as one of the fifth-largest US dollar debt issuers in 2025, accounting for 7 percent of issuance. Fitch added that dollar sukuk issuance in the UAE increased by over 130 percent in 2025, whereas dollar bond issuance fell by 36 percent.
In global terms, the UAE has been rated as the second-largest dollar sukuk issuer and third-largest issuer of environmental, social, and governance-linked sukuk in 2025.
Fitch stated, “The UAE saw the emergence of digitally native notes, along with retail and fractional sukuk, which could improve settlement efficiencies and diversify the investor base.”
The report has warned that the debt capital market in the UAE is still vulnerable to fluctuations in oil prices, changes in interest rates, and geopolitical concerns.
