Bonds and Sukuk
Local currency issues
Bonds and Sukuk
While the total fixed income instruments denominated in the local currency of the Gulf region amounted to $172 billion, Saudi Arabia accounted for $112 billion of those existing issues denominated in Saudi riyals. Perhaps this statistic shows the extent of the economic reforms that the country has directed in recent years towards the local debt markets, as government issues coming from the Ministry of Finance “Public Debt Office” and the Arab Monetary Agency since 2015 have played a significant role in revitalizing the local market.... «Bonds and Sukuk» ...
Sukukuk is the most prominent instrument Bonds and Sukuk.
Hard Currencies Bonds and Sukuk
382 billion dollars Bonds and Sukuk Bonds and Sukuk.
Debt Instruments Bonds and Sukuk.
Sukuk was the most favored debt instrument with local issuers, with Riyal-denominated Sukuk totaling nearly $65 billion (58% of the total). Bonds were the second most commonly used debt instrument with Riyal-denominated issuances, with nearly $47 billion (42%), according to the July research paper. .... “Bonds and Sukuk”
The value of existing GCC debt instruments denominated in hard currency during last July amounted to 382 billion dollars, of which 104.8 billion dollars in favor of Saudi issuers, noting that treasury bills were excluded from the study due to their short-term maturities.
The data was based on the issuance of debt instruments denominated in hard currencies such as the dollar, euro, yen and pound sterling.
Saudi Arabia's sovereign issuances dominated 60 percent with $62.9 billion of total hard currency issuances, followed by government-affiliated institutions with 24 percent with $25.7 billion and financial entities with 15 percent with $15.3 billion. .... “Bonds and Sukuk” ...
It is known that the value of existing Gulf debt instruments denominated in hard currency last July amounted to 382 billion dollars, as the sovereign issuance boom four years ago contributed to the acquisition of 47.7 percent of it, meaning that the region's governments have existing debt instruments worth 182 billion dollars.This prompted the Wall Street Journal to liken what is happening in the Gulf fixed income markets to a sovereign issuance “boom” during its coverage of US banks« activities with Middle Eastern issuers. ....
In recent weeks, GCC bonds have outperformed the rest of the Middle East, North Africa and Turkey. Demand for new GCC debt instruments is outpacing supply in the market, and investors are waiting for issuances to resume in September, as there is liquidity waiting to be invested in new issues. .... »Bonds and Sukuk«
