Borrowers in the United Arab Emirates are selling bonds at a pace nobody has seen before - even as a regional war drags on.
This amount surpasses all prior years for the same timeframe, exceeding the prior high for that interval set six years earlier by roughly $3.7 billion.
The war in the Middle East started at the end of February 2026.
A wide range of borrowers has come to market. RAK Bank PSC issued a $600 million bond. Healthcare company Burjeel Holdings Plc raised $500 million.
The emirate of Ajman sold a $300 million Islamic sukuk. Last week, Kuwait issued a $6 billion bond, which drew bids exceeding double the offering.
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Arqaam Capital Ltd. portfolio manager Fady Gendy, based in Dubai, said: "The growth in gross issuance year-to-date versus the same period last year is a positive development against the context of the geopolitical turmoil the region has faced since March."
Neighboring Kuwait, for example, issued a $6 billion bond last week that was heavily oversubscribed, indicating that the appetite for regional debt remains robust despite the turmoil. The UAE, seen as a relatively stable credit, has benefited from this shift in investor preference.
Two things are driving the borrowing spree. First, the war has created financing holes. Governments and companies need to offset those holes. Second, they are funding post-war revival.
Citigroup Inc.'s Victor Mourad, who co-heads CEEMEA debt financing from Dubai, described the investor sentiment: "institutional investors are anchoring demand on the long-term fundamentals over any short-term geopolitical headlines."
The premium, or spread, that UAE government dollar bonds pay over US Treasury bonds was 65 basis points before the war. Now it is 77 basis points.
The UAE continues to recover from a market slump that started when JPMorgan Chase & Co. reclassified it as a developed market within its bond indices. During the four-month gradual removal of the UAE from emerging-market benchmarks that concluded on June 30, its bonds lagged.
Still, the UAE economy has shown resilience. Dubai's financial center surpassed 10,000 active registered companies, a new high. The country's non-oil export volumes reached an all-time high during the first six months of 2026.
The conflict has also prompted a shift in investor focus toward credits perceived as safer within the region. Analysts note that the UAE's status as a relatively stable issuer in a turbulent neighborhood has helped sustain demand, despite the direct missile threat. Additionally, the government's proactive fiscal measures and the continued strength of the non-oil sector have reinforced confidence among both domestic and international buyers.
Fady Gendy described the current spread as "compelling value," especially given that broader resilience.
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