The Gulf Cooperation Council (GCC) banks are probably going to issue more than $30 billion (Dh110 billion) of US dollar obligation in 2025, down 28.5 percent from $42 billion in 2024.

GCC banks have about $23 billion of US dollar debt developing in 2025 with Qatari banks representing about 33% of the obligation while UAE and Saudi banks about a quarter each. Banks in the area have about $2.2 billion in extra Level 1 (AT1) instruments with first call dates in 2025, and $3.1 billion of every 2026.

After 11 percent year-on-year growth, the debt capital markets reached a milestone of about $1 trillion outstanding at the end of the first 11 months of last year.

GCC banks 2024 US dollar debt issuance was well above the previous record of $25.6 billion in 2020, driven by high credit growth in Saudi Arabia, banks diversifying their funding bases with increased issuance of short-term certificates of deposits, and high debt maturities, on the back of strong investor sentiment.