Khaberni - A recent report showed that the total sovereign debts due on Gulf countries will amount to about $244.8 billion during the period from 2026 to 2030, while corporate debt obligations will reach $263.3 billion during the same period.
According to a report released by Kamco Invest research unit on Sunday, based on Bloomberg data, bond and sukuk maturity levels are expected to remain high until 2030 before beginning to gradually decrease, as governments and companies continue to rely on issuances to fund deficits and investment projects.
The report indicated that US dollar-denominated issuances hold the largest share of the maturity structure at 64.7%, followed by issuances in local currencies, primarily the Saudi Riyal and the Qatari Riyal, at 10.6% and 6.3% respectively.
In terms of credit rating, investment-grade debt instruments constituted the largest share of total maturities, with a value of $239.1 billion, of which $208.7 billion are within the high rating category (A).
In terms of the type of instrument, traditional bonds led with maturities valued at $317.6 billion over the next five years, compared to $190.5 billion for sukuk.
Corporate bond maturities amounted to $173.4 billion, compared to $144.2 billion for government bonds, while government sukuk recorded $100.6 billion compared to $89.9 billion for corporate sukuk.
Geographically, Saudi Arabia maintained the lead with the largest volume of debt instruments due in the Gulf amounting to $174.5 billion by 2030, followed by the Emirates at about $171.8 billion, and then Qatar at about $85.6 billion, while maturities in Kuwait, Bahrain, and Oman each settled at around $25 billion.
The report highlighted that the largest share of maturities in Saudi Arabia was due to government bonds and sukuk valued at $106.4 billion, while corporate issuances dominated maturities in the Emirates valued at $136.2 billion.
Sector-wise, the banking and financial services sector accounted for the largest share of debt maturities valued at $210.4 billion, representing about 79.9% of total corporate debts and 41.4% of total regional maturities by 2030, followed by the energy sector at $21.8 billion, then public utilities at $13.6 billion, and the industry at $5.4 billion.
Emirati banks recorded the highest volume of maturities valued at $80.9 billion, followed by Qatari banks at about $28.2 billion, while banks in both countries together accounted for about 41.5% of the total corporate debt maturities in the Gulf, which is equivalent to 21.5% of the total bonds and sukuk due in the region over the next five years.
