Gulf Cooperation Council (GCC) exchanges are becoming increasingly important channels for capital raising, helping issuers diversify beyond bank lending, access longer maturities and improve pricing transparency, according to Fitch Ratings.
However, Fitch said development across the region remains uneven, with exchanges still constrained by high market concentration, limited product breadth, lower liquidity than many developed and large emerging markets, and fragmented market structures.
GCC stock markets had a combined market capitalisation of about US$4 trillion as of September 2026, while outstanding GCC debt capital markets reached US$1.2 trillion at end-first half 2026, of which sukuk accounted for 42%.
Fitch noted that most GCC equities are listed domestically, while debt listings — particularly hard-currency sukuk and bonds — remain concentrated on offshore exchanges.
The London Stock Exchange accounted for more than half of global US dollar sukuk listings at end-first half 2026, with 95% originating from the Middle East, mainly GCC countries.
Fitch said domestic exchanges in the region are more developed as equity platforms than as broad capital-market hubs covering multiple asset classes.
Market concentration is also a key limitation. On the Abu Dhabi Securities Exchange (ADX), five entities make up around 60% of total market capitalisation, while Saudi Arabian Oil Company accounts for about 65% of the Saudi Exchange’s market value as of August 2026.
The region’s continued reliance on bank financing has also slowed development of domestic debt markets.
Saudi Exchange Remains Region’s Largest
The Saudi Exchange remained the GCC’s largest bourse in September, accounting for about 63% of total GCC market capitalisation, followed by ADX at 18% and Dubai Financial Market (DFM) at 7%.
Fitch rates 24 entities listed on the Saudi Exchange, representing about 84% of its market capitalisation as of August. All are rated investment grade, while 96% carry Stable Outlooks.
Saudi Arabia also has a more developed local-currency debt market than most other GCC economies.
Riyal-denominated sovereign sukuk issuance has helped build a domestic yield curve, improve market liquidity and reduce reliance on foreign-currency funding.
Fitch said all listed riyal-denominated debt instruments are structured as sukuk, reflecting the importance of Islamic banks as investors.
Foreign participation has also been increasing. Foreign investors accounted for 15% of Saudi sovereign primary debt issuance in the first half of 2026, up from 12% in 2025, while foreign ownership of the Saudi main equity market’s free float rose to 12.7% at end-August from 12.4% at end-2025.
The planned inclusion of Saudi government sukuk in the JPMorgan Government Bond Index-Emerging Markets from 2027 is expected to further support foreign participation.
UAE Markets Remain Split Between Equity And Debt Platforms
In the UAE, ADX and DFM remain primarily equity-focused, while Nasdaq Dubai is a major regional debt-listing venue.
Fitch rates 15 entities listed on ADX, accounting for about 28% of its market capitalisation, with around 93% carrying investment-grade ratings and all on Stable Outlooks.
On DFM, Fitch rates nine entities representing more than 40% of market capitalisation, with about 89% investment grade.
Nasdaq Dubai, meanwhile, listed more than 28% of global outstanding sukuk at end-first half 2026.
Total debt listed on the exchange exceeded US$140 billion, around 70% of which was sukuk. Fitch said it rates 80% of hard-currency sukuk listed there, with 91% carrying investment-grade ratings.
Fitch said further development of GCC exchanges will remain important to regional governments’ economic diversification agendas, particularly as they seek to deepen domestic capital markets, attract private-sector participation and widen access for foreign investors.
