Gulf monarchies have discreetly raised almost $10 billion in private bond sales since April, their first international borrowing since the Iran war damaged their economies. Abu Dhabi sold $4.5bn, Qatar $3bn and Kuwait $2bn through private placements, sidestepping public markets where borrowing costs can be more uncertain. The sales demonstrate how these wealthy nations are using a tentative US-Iran ceasefire as an opportunity to quickly raise money.

The borrowing reflects severe economic damage from the war, which has disrupted oil and gas exports through the Strait of Hormuz. Analysts predict all six Gulf states will record negative GDP growth of 5-10% this year. Abu Dhabi has increased international bond borrowing to $8bn so far this year, compared to just over $3bn in 2025. The cost of default protection on Abu Dhabi's debt rose during the conflict but has fallen since the ceasefire.

Private placements offer governments more certainty on borrowing costs by working with smaller groups of investors, despite providing a less diverse investor base. Big asset managers like Pimco are increasingly willing to buy bonds where they negotiate terms bilaterally. Saudi Arabia, the Gulf's biggest sovereign borrower, has yet to tap private markets in disclosed postwar deals, though the kingdom already sold $13.5bn in bonds before the conflict began.