Mubasher: Primary debt issuances in the GCC region set a new record for the total value of issuances raised in one year, despite the double blow of the Covid-19 outbreak and the subsequent decline in oil prices, according to Kuwait Financial Centre’s (Markaz) recent research report titled “GCC Bonds and Sukuk Market Survey 2020”.

Primary issuances of bonds and Sukuk amounted to $132.7 billion during 2020, marking an annual growth of 16% from $114.2 billion raised in 2019.

The bonds and Sukuk market within the GCC consists of bonds and Sukuk issued by governments or corporations for financing purposes and are denominated in either local or foreign currencies. 

The implications of Covid-19 have resulted in added strain on regional economies in terms of growing budget deficits and tightening liquidity, the report said. 

Furthermore, the total number of primary issuances during last year totalled 360, down from 409 issuances in the previous year.

UAE-based issuers led the GCC bonds and Sukuk market during 2020, raising a total of $48.5 billion, or representing 37% of the total value raised in the GCC, through 195 primary issuances.

Saudi Arabia followed with 32% and Qatar with 18% of the total value raised. Moreover, Kuwaiti entities raised a total of $4.6 billion, representing 3% of the total value raised during the year.