Four Arab states of the Persian Gulf issue $112 billion in bonds, partly to cut dependence on the Strait of Hormuz

According to financial market data, Saudi Arabia, Kuwait, the United Arab Emirates and Qatar have together issued $112 billion of bonds since the start of 2026, the highest amount recorded for that period. Bond issuance by the Persian Gulf states has more than tripled compared with 2022.

A significant share of the proceeds is earmarked for developing alternative energy transport and trade routes, including building new ports on the Red Sea and the Sea of Oman, rebuilding older oil and gas pipelines, and upgrading road networks across the region. The stated aim is to reduce vulnerability to potential disruptions at the Strait of Hormuz.

Kuwait alone raised $6 billion in bonds last week, while investor orders reached $14.8 billion, more than double the size of the offering. The Strait of Hormuz remains one of the world's most important energy chokepoints, and a substantial share of Persian Gulf oil and gas exports passes through it.