MENA bond activity surged to $125.9 billion in the first nine months of 2025, rising 20 percent year-on-year. This growth reflects strong investor demand, regional diversification strategies, and increasing interest in Islamic finance instruments across the Middle East and North Africa.
Saudi Arabia led the region with $67.6 billion in bond offerings, more than half of the total proceeds. This marks a 37 percent increase from the same period last year. The UAE followed with $32.7 billion, while Qatar, Bahrain, Morocco, Egypt, Kuwait, and Oman contributed smaller shares.
The Kingdom’s debt market has grown quickly as domestic and global investors seek stable returns and portfolio diversification. Analysts expect Saudi Arabia to lead the Gulf Cooperation Council in bond maturities over the next five years, with around $168 billion due between 2025 and 2029.
The number of bond issuances rose 27 percent compared with last year. Financial issuers produced 58 percent of proceeds, while government and agency issuers contributed 25 percent. Islamic bonds, or sukuk, reached $48.2 billion, a record 28 percent increase over 2024. This demonstrates strong Shariah-compliant investment demand.
Key transactions included two Saudi sovereign issuances totaling $17.45 billion and Saudi Aramco’s $4.95 billion bond deal. Sukuk represented 38 percent of total regional bond proceeds, showing investors’ appetite for compliant debt instruments.
Investment banking activity also rose sharply. Announced mergers and acquisitions reached $157.3 billion, up 166 percent from last year. Growth was driven by the $49 billion acquisition of US gaming firm Electronic Arts, involving Saudi Arabia’s Public Investment Fund. Advisory work from firms such as Goldman Sachs supported deals totaling $104 billion.
Investment banking fees in MENA climbed 14 percent to $1.3 billion. Debt capital markets underwriting fees hit an all-time high of $422.3 million. Equity capital markets fees rose to $247.4 million. Advisory fees from completed M&A deals grew 86 percent to $337.1 million. Syndicated lending fees fell 22 percent.
Looking ahead, MENA bond is expected to remain strong. Countries will continue expanding debt markets, diversifying funding sources, and attracting international investors. Saudi Arabia and the UAE are likely to lead regional growth, while sukuk issuance may further boost Islamic finance participation.
