GCC capital markets have witnessed significant development in recent years, driven by governments’ efforts to diversify funding sources and deepen capital markets, said a top official of global rating agency Fitch.
The combined market capitalisation of listed equity markets across the Gulf countries stands at around $4 trillion, stated Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings.
Speaking to the Emirates News Agency (WAM) on the sidelines of the Arab Federation of Capital Markets (AFCM) Annual Conference – Abu Dhabi 2026, Al Natoor said GCC debt capital markets reached around $1.2 trillion by the end of the first half of this year, with sukuk accounting for approximately 42 percent.
He said the figures reflect the growing importance of capital markets as a funding channel complementing bank financing.
Al Natoor explained that capital markets are becoming increasingly important as a source of financing not only for governments, but also for banks and companies, providing a platform that brings issuers and investors together and helping diversify funding sources in regional economies where companies continue to rely heavily on bank financing.
According to him, GCC markets have developed considerably, although at varying rates depending on the size of individual economies and each country’s strategic priorities.
This development is no longer confined to equity markets but has extended to debt instruments, including sukuk and bonds.
Al Natoor said developing capital markets forms part of the strategies of countries across the region and that growth is therefore expected to continue over the medium and long term, supported by government efforts to deepen capital markets and broaden the range of instruments available to investors and issuers.
The next phase offers opportunities to develop new products and instruments alongside equities, sukuk and bonds, including derivatives, exchange-traded funds and, eventually, asset tokenisation.
He noted that the latter remains at an early stage and provides considerable scope for further development.
On debt markets, Al Natoor said there is significant room for further growth, particularly in domestic markets, given the continued heavy reliance of the region’s corporate sector on bank financing.
He said increasing sukuk and bond issuances and listings would enhance market depth and diversify the investment instruments available to investors.
Al Natoor highlighted Nasdaq Dubai’s position in the debt and sukuk market, saying Fitch data indicate that the exchange listed more than 28 percent of global hard-currency sukuk outstanding at the end of the first half of 2026.
Total debt securities listed on Nasdaq Dubai exceeded $140 billion, with sukuk accounting for around 70 percent.
Al Natoor stressed that continued development of regulatory frameworks, enhanced transparency, stronger investor confidence and a broader product base are essential to deepening capital markets across the region.
These factors would strengthen the role of capital markets in financing companies and economies and further diversify funding sources in the coming period, he added.
