UAE’s debt capital markets see 13.1 percent annual growth in Q3
Date
11/7/2024 7:50:44 AM
(MENAFN) The UAE’s debt capital markets saw a 13.1 percent year-on-year growth in the third quarter of 2024, reaching a total of USD294.4 billion, according to Bashar Al-Natoor, the managing director at Fitch Ratings. This growth highlights the UAE’s expanding financial landscape and its growing influence in the global sukuk market. By the end of the third quarter, sukuk represented 20 percent of the UAE's debt capital market, with the remainder in bonds.
Al-Natoor emphasized that the UAE is a key player in the global sukuk market, holding a 6.6 percent share of the global outstanding sukuk. This positions the UAE as the fourth-largest sukuk issuer globally, following Malaysia, Saudi Arabia, and Indonesia. The country has also emerged as a significant US dollar debt issuer in emerging markets, excluding China, with an 8.9 percent share in the first half of 2024, behind only Saudi Arabia and Brazil.
Furthermore, the UAE ranks as the second-largest issuer of environmental, social, and governance (ESG) bonds and sukuk in emerging markets, outside China, during the first nine months of the year, second only to Brazil. This underscores the UAE's commitment to sustainable financial initiatives.
However, despite overall market growth, Al-Natoor noted a decline in issuance levels. Sukuk issuance in the UAE totaled USD9.9 billion in the first nine months of 2024, reflecting a 13 percent year-on-year decrease. This decline was less severe compared to the 25 percent drop in bond issuance during the same period.
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