By: Mahmoud Gamal

Riyadh – Mubasher: The CEO of Fisch Asset Management, Philipp Good, said that Saudi Arabia acquired 50% of total GCC sovereign bond issues year-to-date.

“So far in 2017, sovereigns and corporates have issued around $20 billion [in bonds], with Saudi Arabia’s latest sovereign issuance accounting for almost 50% of total GCC sovereign bond issues,” Good told Mubasher.

Good noted that total gross issuance in 2016 was around $21 billion, while only $12.6 billion were issued in 2015, and total issuances reached $18 billion in 2014.

Earlier in October 2016, Saudi Arabia raised $17.5 billion (SAR 65.6 billion) from its first international offering of bonds.

“Sukuk is a market that is still expanding, so we see a lot more new issuances versus amortisations and coupons. These dynamics look different from the conventional Emerging Market Bond asset class, and the new type of financing provides a much better balance,” Good said.

“It is very difficult to precisely measure the share of sukuk issuance coming out of the Gulf region compared to other Asian markets, but it is fair to say that most sovereign and corporate sukuk issuers are from the GCC,” he added.

Good expected 2017 to be a record year for new issuances, suggesting that there are key reasons for the likelihood, such as lower oil prices, attractive pricing, ample liquidity in the system, and a strong rally in credit markets on a year-to-date basis.

Translated by: Elwy el-Manzalawy