Abu Dhabi, Qatar and Kuwait have issued $7 billion of bonds in private placements since the start of the US-Israeli war on Iran, selling directly to select investorsAbu Dhabi, Qatar and Kuwait have issued $7 billion of bonds in private placements since the start of the US-Israeli war on Iran, selling directly to select investors

Abu Dhabi, Qatar and Kuwait sell $7bn of bonds privately

2026/04/17 20:29
2 min di lettura
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  • Regional prices slightly below pre-war levels
  • Public bond markets shut to new issuance
  • Little additional risk premium likely

Abu Dhabi, Qatar and Kuwait have issued $7 billion of bonds in private placements since the start of the US-Israeli war on Iran, selling directly to select investors while public bond markets remain shut to wholly new issuance.

The conflict started on February 28 and spiralled into a broader Middle East war before a tentative military truce began on April 8. Market jitters sent regional corporate and sovereign bond prices tumbling but most have rallied following the ceasefire agreement, though they remain slightly below pre-war levels.

Abu Dhabi has sold $2 billion of bonds in a private placement, while Qatar and Kuwait have issued bonds totalling $3 billion and $2 billion via this method. All these instruments have a seven-year duration, data from Mashreq Capital shows. 

The UAE capital also sold $2.5 billion of three and eight-year bonds via a “tap” in which the issuer expands the size of already-issued debt.

“If the ceasefire holds and we start returning to normal, there should be a big pick-up in issuance [on public markets],” said Mohieddine Kronfol, chief investment officer for global sukuk and Mena fixed income at Franklin Templeton in Dubai.

“Overall, markets have been measured and resilient and haven’t priced in much downside.”

The lack of new bond issuance on public markets during March and into early April was a global phenomenon, said Amol Shitole, Mashreq Capital’s head of fixed income.

“Bond markets were effectively closed for six weeks,” he said.

Further reading:

  • Iran conflict sends UAE developer bonds tumbling
  • S&P issues warning on Gulf bank deposits ‘if war persists’
  • Investor sentiment hits Gulf sovereign bonds

Mena bond trading volumes have been low since the war started, said Kronfol, with the relatively muted price movements considering the scale of economic disruption indicating there is unlikely to be much additional risk premium added to new bond issuances, he explained.

“There’s uncertainty, with questions outstanding on what will be the region’s security arrangements,” Kronfol said.

“Will we return to normal economically? Will the service industries recover quickly? Will the same policy framework, which was very pro-business, pro-investment, remain intact?

“The market’s view is yes to all those questions, but there will be a cloud that persists over the region. It will take some months if the ceasefire holds for everyone to be comfortable again.”

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