The UAE’s debt market is expanding at a rapid clip, with outstanding bonds and Sukuk soaring to $309.4 billion by the end of Q1 2025—a year-on-year increase of 8.3 percent, according to new data released by Fitch Ratings. The figures underscore the country’s growing influence in global debt markets and its strategic role in Islamic finance.
Sukuk on the Rise
Sukuk, or Islamic bonds, now make up 20.2 percent of the UAE’s total outstanding debt, while conventional bonds account for the remainder. New Sukuk issuance alone reached $4.9 billion in Q1 2025—more than double the value recorded in Q4 2024. Bond issuance also remained robust, totaling $24.1 billion for the quarter.
“The UAE’s debt markets continue to witness strong growth,” said Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, in comments to the Emirates News Agency (WAM). “This growth reflects the country’s expanding financial ecosystem and strategic position in the Sukuk market.”
Global Ranking and Market Influence
With 6.5 percent of all global outstanding Sukuk, the UAE ranks fourth worldwide, trailing only Malaysia, Saudi Arabia, and Indonesia. It has also become one of the largest US dollar debt issuers among emerging markets—excluding China—with a 7 percent share, following Saudi Arabia, Brazil, and Mexico.
Regionally, the UAE holds a 30 percent share of the Gulf Cooperation Council’s (GCC) total $1.03 trillion in outstanding bonds and Sukuk, placing it second only to Saudi Arabia. In Sukuk alone, the UAE accounts for 15.6 percent of the GCC’s total.
ESG Leadership Among Emerging Markets
The UAE is also asserting itself in sustainable finance. As of Q1 2025, the country ranked third among emerging markets (excluding China) for ESG-related bonds and Sukuk, behind Türkiye and the Philippines. This positions the UAE as a leading force in aligning financial growth with environmental and social priorities.
