Bond binge to tackle deficits

Regional Views
bond binge

External headwinds and an extended period of low oil prices have prompted a strong wave of debt issuance across MENA in 2020. This week, we analyse the debt market in the region, focusing on: 

  • How governments have responded to the pandemic by opting to borrow rather than liquidating assets to fund their fiscal deficits. 
  • The boost in sovereign sukuk issuance in the GCC, which we expect to expand in the next quarters. 
  • The increase in government reliance on domestic financing, due to record-low interest rates and increased risk appetite. 
  • The return of international investor enthusiasm for Egypt's bond market and the improvement of its yield curve. 

 

Florence Eid-Oakden, Ph.D, Chief Economist

Ghalia Al Bajali, Analyst

The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.

To access this report, please click here.

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