The government of Kuwait has not borrowed $55bn from domestic and international markets, according to its finance ministry.

The oil-rich Gulf state is “crafting a scheme and allotting finds for public debt bonds for the year, according to its strategy and developments in the oil market”, the ministry said in a statement published by state news agency Kuwait News Agency (Kuna). Media reports claiming that the government has borrowed this amount are inaccurate, the report added.

Kuwait, like the rest of its GCC peers, is looking to raise funds from domestic and international markets to fill a widening budget gap after a slide in oil prices dented its revenues.

In July, finance minister Anas al-Saleh, who is also deputy prime minister and acting oil minister, said the government plans to issue up to KD3bn ($9.95bn) in US dollar-denominated bonds and sukuk (Islamic bonds) in international markets to help it plug the deficit for the current 2016-17 fiscal year.

Kuwait also plans to borrow up to KD2bn in debt from the domestic market in conventional and Islamic instruments, according to Al-Saleh.

The remainder of the expected KD9.5bn dinar budget deficit for the current fiscal year, which began on 1 April, will be covered by withdrawals of funds from the state general reserve.

Bahrain is the latest Gulf sovereign looking to raise funds through the sale of benchmark-sized eurobonds later this year.

Oman in June raised $2.5bn through the sale of dual-tranche bonds, while Qatar secured $9bn in a three-tranche bond offering in May. Saudi Arabia is looking to raise as much as $15bn from a bond offering later this year. In April, Riyadh also agreed terms with a group of international lenders for a $10bn loan, its first sovereign debt in at least 15 years.

Abu Dhabi, the biggest emirate in the UAE, launched a two-part $5bn bond earlier this year.