MENA bond issuances surge $95.9bn in 2023, reports KAMCO Invest

Aggregate bond issuances in the Middle East and North Africa region reached $95.9 billion in 2023, marking an 18.98 percent increase compared to 2022.

According to a report released by KAMCO Invest, this growth was propelled by higher issuances from corporates in the region, compensating for the decline in issuances by MENA sovereigns.

The UAE emerged as the largest bond issuer in the MENA region in 2023, with issuances totaling $39.1 billion, followed by Saudi Arabia and Morocco at $19.1 billion and $18.3 billion, respectively.

“At the country level, the growth was led by higher issuances by GCC (Gulf Cooperation Council) corporates and sovereigns in 2023 that helped to offset an overall decline in issuances non-GCC MENA countries during the year,” stated KAMCO Invest in the report.

Within the MENA region, GCC countries were the key drivers of increased bond issuances, totaling $58.2 billion in 2023 compared to $40.4 billion in the previous year, marking a 44.2 percent increase.

GCC corporates demonstrated healthy growth in 2023, with total bond issuances reaching $40 billion, a 73 percent increase compared to the previous year.

“The monthly trend in GCC issuances showed big-ticket issuances during the first two months of the year (2023) aggregating $22.5 billion followed by much smaller but consistent issuances during the rest of the year,” noted KAMCO Invest.

Conversely, bond issuances by non-GCC countries in the MENA region declined in 2023, reaching $37.7 billion compared to $40.2 billion in 2022.

Meanwhile, global sukuk issuances declined for the second consecutive year in 2023 after showing a partial recovery in 2022.

Total sukuk issuances globally stood at $108 billion in the previous year, representing a 15.22 percent decline compared to 2022. The sukuk issuance in 2023 was also the lowest in five years.

Saudi Arabia retained its position as the top global sukuk issuer during the year, with aggregate issuances reaching $38.4 billion. However, sukuk issuance by the Kingdom in 2023 was the lowest in three years, marking a decline of 15.88 percent compared to 2022.