Fixed income issuances in GCC top $145bn in 2021

Kamco, a Kuwait-based financial powerhouse said in a statement: Fixed income issuances in the GCC as of mid-December-2021 stood at $145.5 billion as compared to $150.4 billion in issuances last year.

According to Kamco’s latest GCC Fixed Income Market Update, the decline was mainly led by better fiscal position of the regional governments backed by elevated oil prices.

Expected fiscal deficits for 2021 by most of governments in the region were also one of the key factors of elevated sovereign issuances during the year.

The year 2021 was a turnaround year for world financial markets, and specifically for the GCC region due to the additional impact and influence of oil prices.

The recovery in financial and commodity markets in 2021 came as an encouraging sign for exporters, although logistical and supply issues continue to hamper production in certain areas. The Covid-19 induced financing requirements saw debt levels reaching record levels globally and in the GCC last year with record high issuances from almost all countries in the region in 2020.

Crude oil also witnessed a steep recovery and saw the OPEC steering the markets to push oil to the highest in 7-years from a 3-decade low seen last year.

“For 2022, once again we are expecting a decline in issuances from the government that is expected to be partially offset by higher issuances from corporates,” Kamco said in the report.