MENA capital markets in H1 2026: Debt stays open as equity pauses

Global capital markets had their strongest first half in years in 2026. Equity issuance rose 72% from a year earlier to $568.8 billion, a five-year high for the period, and debt issuance reached $7.1 trillion, the highest first-half total since records began in 1980.¹ The Middle East and North Africa (MENA) moved the other way on equity: issuance fell 71% to $2.1 billion as regional hostilities led issuers to reassess their plans (Exhibit 1).²

Yet the region’s debt markets held up. MENA bond issuance rose 6% to $96.9 billion, even as the number of issues fell 14%.³ For regional companies, the half-year therefore produced two different markets: an equity window that all but closed, and a debt market that remained open, particularly to banks, governments, and other established borrowers (see sidebar, “About the data”). This article sets out three findings: the global rebound, the regional divergence, and the implications for issuers preparing to raise capital.

About the data

The figures in this article come from LSEG Deals Intelligence, the deals data service of the London Stock Exchange Group (LSEG), which compiles equity and debt issuance by the nation of the issuer. We have used LSEG’s first-half 2026 results as reported by Investment Executive and Zawya, without adjustment.

The first half runs from January 1 to June 30, and growth rates compare with the same period of 2025. Equity issuance includes initial public offerings, follow-on offerings, and convertibles; MENA bond totals include sukuk. LSEG revises its data as transactions are reclassified, so later releases may show slightly different totals.

The global rebound: Larger deals, fewer of them

The global surge came from deal size rather than deal count. The number of equity deals rose 10%, against a 72% rise in value, and second-quarter issuance was 83% higher than the first quarter’s.¹ Initial public offerings (IPOs) more than tripled to $170.1 billion, even as the number of listings fell 3%. A single transaction did much of the work: the $86.3 billion listing of SpaceX supplied about half of global IPO proceeds (Exhibit 2).

Debt markets showed the same pattern. Investment-grade corporate issuance reached a record $3.4 trillion, up 10%, and high-yield issuance rose 12% to $261.0 billion, while the number of new offerings fell 12% to nearly 17,000, a three-year low.¹ Green bonds rose 16% to $307.9 billion. When markets concentrate on fewer, larger transactions, the benefits tend to go to issuers that investors already know and that are ready to launch when conditions allow.

The regional divergence: Debt stays open as equity pauses

Regional hostilities weighed most heavily on equity. IPOs depend on investors’ confidence in valuations, and that confidence tends to erode when the outlook is uncertain. Even so, a senior regional banker reported that several companies were looking at equity transactions after the summer.²

Bond markets told a different story. Saudi Arabia accounted for 45% of MENA bond proceeds, the United Arab Emirates (UAE) for 28%, and Qatar for 12% (Exhibit 3). Financial institutions raised 45% of the total, and governments and their agencies 30%.³ Sukuk were the exception: Islamic bond issuance fell 36% to $21.8 billion, cutting its share of regional bond proceeds to 23%, the lowest in five years.

Banks felt the slowdown too: investment banking fees earned in the region fell 19% to an estimated $757.1 million, a three-year low.⁴

The implications: Three priorities for regional issuers

The data do not show when the equity window will reopen. They do suggest three priorities for companies that expect to raise capital in the region.

When markets concentrate on fewer, larger transactions, the benefits tend to go to issuers that investors already know and that are ready to launch when conditions allow.

• Use the debt market on its merits. Regional bond markets absorbed $96.9 billion in the first half despite the hostilities, and most of the proceeds went to banks, governments, and other established borrowers. For companies with refinancing or growth needs, debt may offer the more predictable route while equity markets remain selective.
• Prepare for the equity window before it reopens. A listing depends on audited financial history, governance that meets exchange standards, and an equity story that investors can test. Companies that complete this work while markets are quiet could be ready to launch when conditions improve, rather than starting once the window is already open.
• Weigh structure as well as timing. The sukuk share of regional bond issuance fell to its lowest level in five years. For issuers that can choose between conventional and Sharia-compliant structures, the depth of investor demand for each may matter as much as when they come to market.

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The first half of 2026 showed how quickly global capital moves when conditions allow: equity and debt markets both set records. In MENA, the same six months showed how quickly an equity window can close. When it reopens, the companies most likely to benefit are those that used the pause to prepare.