The GCC debt capital markets have reached approximately $1.2 trillion by the end of the first half of 2026, with sukuk comprising around 42% of this total, according to Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings. This significant growth reflects the ongoing efforts of regional governments to diversify funding sources and enhance the role of capital markets in financing their economies, as reported by Economy Middle East.
At the Arab Federation of Capital Markets (AFCM) Annual Conference held in Abu Dhabi, Al Natoor noted that the combined market capitalization of listed equities in the GCC has reached around $4 trillion, highlighting the substantial expansion of both equity and debt markets in the region.
Capital Markets Evolving Beyond Equities
Al Natoor explained that capital markets are increasingly becoming vital financing sources for governments, banks, and corporations. This evolution is crucial in economies where there is a heavy reliance on traditional bank financing. He pointed out that while the development of capital markets has varied across different GCC countries, the overall trend indicates a significant shift towards more diversified funding sources.
The expansion of these markets now includes a variety of debt instruments, such as sukuk and conventional bonds, which are becoming essential for connecting issuers with investors.
Future Growth Opportunities in Investment Products
Looking ahead, Al Natoor indicated that the next phase of market development will likely introduce new financial products, including derivatives, exchange-traded funds (ETFs), and asset tokenization. Although asset tokenization is still in its infancy, it presents considerable potential for future growth.
He also emphasized the need for increased sukuk and bond issuances to deepen the GCC debt markets, particularly as the corporate sector continues to depend on bank financing.
Nasdaq Dubai’s Role in Sukuk Markets
Al Natoor highlighted Nasdaq Dubai’s significant position in both regional and international debt capital markets, particularly regarding sukuk listings. By the end of the first half of 2026, Nasdaq Dubai accounted for over 28% of the global hard-currency sukuk listed on exchanges, with the total value of debt securities listed exceeding $140 billion.
With sukuk representing approximately 70% of this total, Nasdaq Dubai plays a crucial role in facilitating access to international investors for issuers. Al Natoor stressed that ongoing improvements in regulatory frameworks, transparency, and investor confidence will be essential for further developing capital markets across the GCC.
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