UAE Ranks Second Globally in Islamic Syndicated Finance with 31% Share
Source: Al Khaleej (الخليج) — اقتصاد
The story in brief
The UAE has secured the second position globally in the Islamic syndicated finance market, holding a 31% share of total outstanding Islamic syndicated financing worldwide. This places it behind Saudi Arabia, which holds 37%. Fitch Ratings projects moderate growth for the Islamic syndicated finance sector during the second half of 2026, highlighting its increasing importance as a key funding source in markets including the UAE, Saudi Arabia, Egypt, and Turkey. The total volume of outstanding Islamic syndicated financing globally exceeded $216 billion, marking a 14% year-on-year growth. The UAE dirham accounted for 10% of syndicated issues.
Detailed summary
The UAE is reinforcing its position as a leading global market in Islamic syndicated finance, ranking second worldwide with a 31% share of total outstanding Islamic syndicated financing. Saudi Arabia leads with a 37% share, followed by Egypt at 7% and Bahrain at 5%. Fitch Ratings forecasts continued moderate growth in the Islamic syndicated finance market through the second half of 2026, underscoring its crucial role as a primary funding source in key markets such as the UAE, Saudi Arabia, Egypt, and Turkey.
The global volume of outstanding Islamic syndicated financing has surpassed $216 billion, demonstrating a 14% year-on-year increase. This growth reflects the sector's continuous expansion and its growing importance in providing long-term financing. The US dollar captured the largest share of these issues at 53%, followed by the Saudi Riyal at 22%, and the UAE Dirham at 10%, indicating the sustained significance of the Emirati currency in this market.
Fitch noted that institutions in GCC countries are increasingly turning to Islamic syndicated financing channels due to their advantages over Sukuk and bond issuances. These benefits include faster execution, fewer involved parties, the bespoke nature of the financing, and longer maturity periods, which typically range from one to 40 years, with an average of 12.8 years.
Industrial companies were the largest recipients of outstanding Islamic financing, accounting for 50%, followed by electrical utilities at 29%, and financial companies at 11%. Fitch also highlighted the UAE's continued participation in major deals. Notable transactions include Masdar (rated AA-/Stable), Aldar Properties, and Ta’ziz, all of which successfully secured Islamic syndicated financing. Additionally, Avalon Holdings, a major aircraft leasing company (rated BBB/Stable), obtained a $455 million credit facility from Middle Eastern banks, which included an Islamic tranche. Fitch confirmed that approximately 64% of Islamic banks and multilateral financial institutions rated by them globally held investment-grade ratings by the end of H1 2026, excluding national ratings, which underscores the sector's strong creditworthiness.
Background & context
This story sits within Saudi Arabia's broader reform agenda and efforts to grow Capital Markets as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.
Key numbers & facts
- The UAE has secured the second position globally in the Islamic syndicated finance market, holding a 31% share of total outstanding Islamic syndicated financing worldwide.
- This places it behind Saudi Arabia, which holds 37%.
- The total volume of outstanding Islamic syndicated financing globally exceeded $216 billion, marking a 14% year-on-year growth.
- The UAE dirham accounted for 10% of syndicated issues.
- The UAE is reinforcing its position as a leading global market in Islamic syndicated finance, ranking second worldwide with a 31% share of total outstanding Islamic syndicated financing.
Key points
- The UAE has secured the second position globally in the Islamic syndicated finance market, holding a 31% share of total outstanding Islamic syndicated financing worldwide.
- This places it behind Saudi Arabia, which holds 37%.
- Fitch Ratings projects moderate growth for the Islamic syndicated finance sector during the second half of 2026, highlighting its increasing importance as a key funding source in markets including the UAE, Saudi Arabia, Egypt, and Turkey.
- The total volume of outstanding Islamic syndicated financing globally exceeded $216 billion, marking a 14% year-on-year growth.
Why this matters
This matters because activity in Capital Markets shapes capital flows, hiring and investor sentiment across Saudi Arabia.
Economic & market impact
Potential impact: - Listed GCC equities and indices may see direct trading reaction.
GCC angle
For the rest of the GCC, this is a signal on the pace of activity in Capital Markets. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.
Risks & uncertainty
There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.
What happens next?
Watch for upcoming disclosures from listed names in Capital Markets, official macro releases for Saudi Arabia, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.
Sources used
This is an original Tharwa briefing based on the available source material. Read the full article from the publisher.