MENAT Credit Monitor - 19 January 2026

Market attention moves to geopolitics and tariffs

Regional credit markets were steady last week, with GCC bonds marginally higher and spreads tightening across sovereign, corporate and sukuk sectors amid renewed geopolitical focus.
Geopolitics dominated market sentiment, as unrest in Iran lifted oil prices before retreating, while new US tariff threats on European NATO allies added to global uncertainty.
Key central bank event ahead: Markets await Türkiye’s 22 January meeting, where another 150bps rate cut is expected as disinflation continues.
Primary market activity remains strong, with USD 28.4bn in GCC issuance so far in 2026—about 31% higher than the same period last year, contributing to heavy secondary performance.