Gulf bond markets reopened with $7.5 billion in new debt issuance during the week ending June 26, 2026. This followed the April 8 ceasefire in the U.S.-Iran war and the subsequent stabilization of GCC fixed-income yields.

Several entities issued debt, including QatarEnergy, Avilease, Emirates NBD, FAB, Dukhan, and Burjeel. UAE healthcare group Burjeel Holdings issued a debut sukuk totaling $500 million, which marked the first tranche of its $1.5 billion sukuk program.

Burjeel Holdings' $500 million sukuk issuance was oversubscribed by more than three times, with its order book reaching a peak of $1.6 billion. International investors acquired 61% of the allocations in this sukuk issuance. Buyers from the U.K. accounted for 34% of these allocations, while offshore U.S. accounts made up 24%. Gulf investors received 39% of the allocations.

The $1.5 billion sukuk program by Burjeel Holdings had been suspended following the outbreak of the U.S.-Iran war in February 2026. Gulf primary bond issuance ceased after the conflict began, and corporate and sovereign bond yields in the Gulf increased as geopolitical tensions escalated during that period.

Since the ceasefire on April 8, GCC fixed-income yields have increased. Yield spreads between GCC investment-grade debt and U.S. Treasury bonds have narrowed to their pre-war levels. However, spreads on speculative-grade GCC sukuk remain elevated.

Fitch, a credit rating agency, stated in a podcast interview, "The future yield trajectory of GCC fixed income remains uncertain." Five of the six Gulf countries hold investment-grade ratings from the three major credit rating agencies; Bahrain is not rated investment grade by these agencies. Burjeel Holdings is listed on the Abu Dhabi Securities Exchange.

Why It Matters

The resumption of bond issuance, totaling $7.5 billion in a single week, indicates a return of investor confidence in Gulf bond markets following a period of geopolitical instability. The prior halting of Gulf primary bond issuance and the rise in yields during the U.S.-Iran war show the impact of regional conflicts on financial markets. The oversubscription of Burjeel Holdings' sukuk and high international investor participation suggest a demand for Gulf debt instruments despite lingering uncertainties.

The narrowing of yield spreads for investment-grade debt to pre-war levels reflects a stabilization in market perceptions, though elevated spreads for speculative-grade sukuk indicate continued caution in certain segments. The statement from Fitch notes that the long-term outlook for yields in the region is still developing.