RIYADH — Fitch Ratings revealed that the Saudi stock market remained the largest in the Gulf region in September 2026, accounting for approximately 63 percent of the total market capitalization of Gulf stock markets. The Abu Dhabi Securities Exchange followed with an 18 percent share, while the Dubai Financial Market accounted for about 7 percent. In its report, Fitch rated 24 entities listed on the Saudi market, representing approximately 84 percent of its market capitalization as of August 2026. The report noted that all of these entities carry investment-grade ratings, with 96 percent assigned a stable outlook. The report further stated that Saudi Aramco accounted for approximately 65 percent of the Saudi market capitalization as of August 2026, highlighting the high levels of concentration in the region’s markets. Meanwhile, five entities represented approximately 60 percent of the Abu Dhabi market capitalization. The report noted that the Saudi market also has a more developed local currency debt market than most other Gulf markets, where local currency debt markets remain nascent, with limited issuance to date. The report indicated that the issuance of riyal-denominated sovereign sukuk reflects the Saudi government’s efforts to develop a local yield curve, enhance market liquidity, and reduce reliance on foreign currency financing. It noted that all listed riyal-denominated debt instruments are in the form of sukuk, designed to attract Islamic banks, which are key investors. Fitch Ratings anticipates that the inclusion of Saudi riyal-denominated government sukuk in the JPMorgan Emerging Markets Bond Index, beginning in 2027, will contribute to attracting further foreign investment. The report noted that foreign investors’ share of Saudi sovereign debt issuances in the primary market rose to 15 percent during the first half of 2026, compared to 8 percent in the first quarter and 12 percent during 2025. In the stock market, foreign investors’ ownership of free-float shares on the main market increased to 12.7 percent by the end of August 2026, compared to 12.4 percent at the end of 2025. Fitch stated that Saudi Arabia’s abolition of the Qualified Foreign Investor (QFI) framework, effective February 2026, would broaden market participation. Regarding Gulf debt markets, Fitch noted that most Gulf equities are listed on domestic exchanges, while listings of Gulf debt instruments, particularly sukuk and bonds denominated in foreign currencies, are concentrated in offshore markets. It was revealed that the London Stock Exchange will account for more than half of global dollar-denominated sukuk listings by the end of the first half of 2026, with 95 percent originating from the Middle East, primarily from the Gulf Cooperation Council (GCC) countries. In the UAE, Fitch noted that the Abu Dhabi and Dubai stock markets focus mainly on equities, while debt instrument listings are concentrated on Nasdaq Dubai. Fitch stated that stock markets in the Gulf countries are gaining increasing importance as channels for raising capital, alongside bank financing, by expanding issuers’ access to capital, supporting longer financing maturities, and improving pricing transparency. In its report, Fitch added that market development remains uneven across the Gulf countries, characterized by high levels of concentration, limited product diversification, and lower liquidity compared to many major developed and emerging markets, in addition to fragmented market structures.It noted that the combined market value of Gulf stock markets reached about $4 trillion in September 2026, while the volume of outstanding debt instruments in Gulf capital markets reached about $1.2 trillion by the end of the first half of this year, of which sukuk constituted 42 percent.