Gulf monarchies have discreetly raised almost $10 billion in private sales of dollar bonds in April 2026 — their first international borrowing since the Iran war hit the region's economies. Abu Dhabi placed $4.5 billion, Qatar $3 billion and Kuwait $2 billion, sidestepping public markets where borrowing costs have become less predictable. The issuance comes as Qatar has been forced to suspend LNG (liquefied natural gas) exports and oil flows from Kuwait and the UAE have been sharply reduced following near-complete closure of the Strait of Hormuz.

Capital Economics expects all six Gulf states to record GDP contractions of 5% to 10% this year even if the war ends soon. The Gulf collectively controls more than $3.5 trillion in sovereign-fund and state-investor assets but remains a regular borrower to fund diversification. Abu Dhabi issued $2 billion through Goldman Sachs with a 4.6% coupon and earlier placed $2.5 billion via Standard Chartered; Kuwait's $2 billion was arranged by HSBC at a 4.8% coupon; JPMorgan ran Qatar's placement, listed on the London market. Abu Dhabi's 2026 international issuance is now $8 billion versus $3 billion for all of 2025.

Five-year default-protection costs (credit default swaps, or CDS) on Abu Dhabi debt spiked to about 55 basis points last month from below 30 before the war, easing to 40 since the ceasefire. Saudi Arabia, the Gulf's biggest sovereign borrower, has not yet tapped private markets; it raised $13.5 billion in January-February versus $53 billion across all of 2025. Pimco said it remains 'ready to deploy further capital' to Gulf sovereigns. Source: Financial Times, 16 April 2026, Joseph Cotterill.