GCC corporate bond market

Dubai—Saudi Arabia, Abu Dhabi and Qatar’s international bond issues of $17.5 billion, $5 billion and $9 billion, respectively, create a pricing benchmark that will support the broader growth of capital markets in the region, Fitch Ratings says.
The lack of a sovereign yield curve has been one of several factors holding back corporate bond issuance in the region. But these dynamics are starting to change, and corporate issuance should gradually start to take off in 2017.
Given the shift in oil prices and Fitch Rating’s expectation that they will only recover to around $65 a barrel in the long-term, Fitch believes sovereign issuance from Gulf Cooperation Council members will become a more regular feature of these markets.—Agencies

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