Emerging-market borrowers have raced to secure funds this September, with the Middle East at the epicenter of a bond-selling spree. Already this month, debt deals from government entities in Saudi Arabia and Turkey alone have raised nearly $14 billion — and coming months could see the sale of bonds and Islamic bonds, or sukuk, hit record levels in 2025. 

This September's borrowing boom arrives amid a broader wave of issuances in 2025, underlining the Middle East’s status as one of the busiest and most resilient players in international debt markets in a year full of geopolitical shocks and global financial turmoil.

The timing, however, is important, with regional issuers seeking to capitalize on favorable conditions as yield-hungry investors target emerging market debt. On Sept. 17, the US Federal Reserve cut interest rates for the first time in a year, signaling the start of a new rate-cutting cycle. This move will have a ripple effect on global financial markets, including in Gulf states that peg their currencies to the US dollar and adjust interest rates in step with the Fed.

Looking ahead, the Middle East’s debt markets are poised to stay active. According to Junaid Ansari, director of investment strategy and research at Kuwait’s Kamco Invest, Q4 could see an increase in issuances compared with Q3, mainly driven by corporations, maturity refinancing and an opportunity to lock in lower rates as the US Fed signals up to six cuts before the end of 2026.