gcc public debts reached to415 billion
Wednesday 9 July 2025
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

According to report

GCC public debts reached to $ 415 billion

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleGCC public debts reached to $ 415 billion

National Bank of Kuwait
Jeddah - Muslimchronicle

 A report issued by the National Bank of Kuwait’s Studies and Research Unit confirmed a decline in yields on Gulf sovereign bonds in parallel with a decline in risks and a rise in oil prices. Gulf Cooperation Council debt issuance picked up in the third quarter of 2017 as the typically slower summer season came to an end but activity remained predominantly in the public sector, the report said.

Total new issuance amounted to $24 billion compared to $21 billion in 2Q17. Private sector activity continued to weaken in 3Q17, with the share of sovereign issuances up to 94 percent. Total outstanding debt was up a healthy $20 billion, to rest at $415 billion, according to the report. Sovereign activity was strong during 3Q17 with $23 billion in new issuances and the bulk coming from Saudi Arabia.

Bahrain tapped international markets for the second time this year with a $3 billion issuance. Despite Bahrain having a rating below investment-grade by the three main rating agencies, the offering was well received and almost five times oversubscribed, reflecting the strong appetite and increased attractiveness of the regional debt market. Saudi Arabia and Kuwait issued domestic debt of $11 billion and $4 billion, respectively.

Following the sharp increase in the Credit Default Swap (CDS) rates on the back of Qatar’s dispute with its GCC neighbors, CDS rates for most of the tracked sovereign’s came off in 3Q17. For the most part, the region’s risk profile benefited from the recovery in oil prices. CDS rates for Saudi Arabia and Qatar dropped the most, by 31 bps and 22 bps, respectively. As for the rest of the GCC, their rates were little changed.

GCC debt issuance is expected to remain healthy in 4Q17 as sovereigns continue to seek cheap deficit financing in favorable market conditions. In early October, Saudi Arabia raised $12 billion in dollar-denominated debt almost a year after its debut international issuance. Abu Dhabi also just completed a $10 billion international offering.

GCC yields tracked international markets and closed the quarter slightly lower. The quarter saw a marked improvement in oil prices, which also helped GCC yields move lower. Oil prices were up 25 percent in 3Q17, increasing the appeal of regional paper as fiscal concerns were alleviated. Most GCC sovereign yields were marginally down on the quarter.

Yields on GCC sovereign bonds dropped more notably following the sell-off seen in 2Q17. On the international level, global and GCC debt markets yields traded in a narrow range in 3Q17 as central banks’ increased hawkishness and the improving economic outlook were countered by geo-political tensions, White House political challenges and stubbornly low inflation.

Issuance in the GCC picked up in 3Q17, but continued to be dominated by domestic sovereign issuance. Bahrain was the only country to issue internationally. GCC primary debt market activity is expected to stay healthy for the remainder of 2017.

International benchmark yields trended downward for most of the quarter as North Korea worries benefited safe haven assets. Persistently low inflation in the major economies also continued to put a cap on yields. However, most yields ended the quarter slightly higher following a more hawkish tone by the unveiling of President Trump’s pro-business tax plan late in the quarter.

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gcc public debts reached to415 billion gcc public debts reached to415 billion

 



Themuslimchronicle, themuslimchronicle

GMT 17:04 2017 Thursday ,31 August

Hajj sermon called Muslim world for more unification

GMT 08:26 2017 Tuesday ,06 June

Rania Yussef happy for 'The International'

GMT 10:27 2017 Wednesday ,05 April

LeBron James fuels Cavaliers' rout of Magic

GMT 06:53 2017 Friday ,03 November

Syria forces near capture of Deir Ezzor city from IS

GMT 06:08 2017 Saturday ,15 April

LG G6 global rollout begins

GMT 08:13 2017 Tuesday ,24 October

Iraq PM challenges Tillerson on Iran remarks

GMT 07:34 2017 Saturday ,12 August

World's oldest man dead in Israel at 113

GMT 08:54 2018 Monday ,22 January

Kane strikes but Spurs drop points

GMT 13:25 2017 Wednesday ,02 August

IS claims mosque attack in Afghanistan's Herat

GMT 08:47 2018 Monday ,15 January

Japan sewers clean up their act

GMT 16:13 2018 Sunday ,14 January

Netanyahu urges Macron to 'fix' Iran nuclear deal

GMT 19:49 2011 Wednesday ,03 August

Shell admits \'devastating\' Nigeria oil spills

GMT 14:49 2012 Wednesday ,10 October

Classical poetry by al-Buhturi

GMT 07:22 2014 Monday ,03 November

Myanmar turn libraries into modern centre

GMT 02:21 2017 Tuesday ,18 April

Cyclone Debbie batters Queensland in Australia

GMT 18:43 2017 Thursday ,23 February

Pakistan army's new major operation

GMT 11:21 2017 Tuesday ,14 March

Leonard inspires as Spurs draw level with Warriors

GMT 20:08 2017 Tuesday ,10 October

Haiti looks to Benin for guidance

GMT 20:48 2017 Thursday ,16 March

Lebanese President Meets Ghana's Defense Minister

GMT 10:03 2017 Sunday ,10 September

OIC Summit on Science and Technology meeting opens

GMT 08:43 2017 Monday ,25 December

Ford chief apologizes for sex harassment

GMT 11:09 2017 Sunday ,24 December

Afghan intelligence arrests 28 suspects in 24 hrs
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle