Mubasher: The GCC’s bond and sukuk market has grown by $70 billion in 2017, with expectations of an increased investor appetite, according to a joint report released by Emirates NBD Asset Management (Dubai) and Fisch Asset Management (Zurich).
In 2017, a series of events took place in the region that had an impact on the regional debt market, and their impact may last for 2018.
“While the regional debt market has historically been considered self-sufficient, deals in 2017 showed a clear trend towards a diversification of the investor base, indicative of a developing GCC bond market with a sophisticated variety of structures and maturities,” Philipp Good, CEO at Fisch Asset Management, said.=
The joint report’s key take-aways highlighted the GCC market’s capability to take in significant uptick in bond issuance without a real price disruption, “which speaks strongly for the GCC’s appeal to global emerging market investors, particularly in Asia and the US,” Good added.
Non-GCC investors were able to absorb more than 75% of the bonds issued in the primary market.
Geopolitical developments in the GCC failed to weigh on Islamic debt issuance, against analysts’ expectations.
GCC issuers have raised $2.25 billion of shariah- compliant debt instruments in the period between June and December 2017, the report showed.