Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi local debt sales seen surpassing int'l issues in '14   Join our daily free Newsletter

MENAFN - Arab Times - 21/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Companies in Saudi Arabia will favour local debt markets over international bond issues to meet their financing requirements in 2014 as high liquidity keeps funding costs down, a top executive at Deutsche Bank said. Saudi firms have increasingly looked to the local debt market in recent years to help diversify their funding sources away from bank loans, with ample liquidity in the domestic market often suppressing borrowing costs to levels well below rates for equivalent dollar-denominated bond sales. With interest rates on international markets expected to rise from historic lows as the US Federal Reserve begins to wind down its quantitative easing programme in 2014, the insulated Saudi market and its low borrowing costs are expected to remain attractive to the kingdom's issuers



"There is a lot of liquidity looking for a good home in Saudi Arabia. And importantly the Saudi market has developed comfort with long-term debt issues in Saudi riyals," Jamal al-Kishi, chief executive officer of Deutsche Securities Saudi Arabia, said. "We expect local debt market activity this year to surpass international bond sales by Saudi issuers," he said. The German lender is one of the more active international banks in the Gulf's largest economy, which is expected to open up its markets to foreign investors. Deutsche competes with HSBC and J.P. Morgan Chase Inc in arranging and advising companies and state-owned entities on their capital market needs in the kingdom



Deb

The bank earned 14.4 million in fees from arranging debt issues in the Middle East during 2013, second behind HSBC, which earned 15.4 million, according to Thomson Reuters. Construction firm Saudi Binladin Group and dairy producer Almarai were among the issuers of local currency Islamic bonds last year, while Deutsche Bank helped Sadara Chemical Co, a venture between Saudi Aramco and Dow Chemical, raise 7.5 billion riyals to fund construction of its facilities last March. A number of banks, including Saudi Hollandi Bank and Saudi British Bank, have also sold sukuk in the local market to improve their reserves after a period of loan growth. "For entities who do not have a lot of outstanding debt, issuing in the local debt market may prove less costly and more straightforward," Kishi said. Kishi expects measures will be taken in 2014 to open up Saudi Arabia's stock market to foreign investors



Saudi Arabia is the Arab world's biggest stock market and, by some measures, the world's last sizeable market that has not opened to international capital flows. Hopes of the market opening to direct foreign investment has prompted international banks to beef up their presence in the kingdom. "Saudi needs responsible long-term oriented capital that will bring technology and best practice to our industrial and service sectors," he said. While the Saudi government has been making technical preparations, it has never set a date for opening the market. The capital markets regulator in the kingdom has said that any market opening would take place only in a gradual manner. "Saudi Arabia does not need foreign capital per se but what we need is a responsible, enlightened capital that will come in and add qualitatively to the way our market opens," Kishi said




 






  MENA News Headlines
 Jul 30 2014 - Safe haven status boosts investment scope in UAEspanKhaleej Times
(MENAFN - Khaleej Times) E political situation in the region has made Dubai into a magnet for families from across the region to set up home and establish regional or global offices for their ...

 Jul 30 2014 - Tech Mahindra eyes expansion in Saudi ArabiaspanKhaleej Times
(MENAFN - Khaleej Times) Ch Mahindra a specialist provider of connected solutions has announced that it has signed a joint venture agreement with Midad Holding which is a subsidiary of Al Fozan a ...

 Jul 30 2014 - Middle East earns 1 of global market research revenuesspanKhaleej Times
(MENAFN - Khaleej Times) E entire Middle East region earned only a meager one per cent of the global market research revenues which indicates the potential for market research that is prevalent in ...

 Jul 30 2014 - Dewa to show smart initiatives at Gitex 2014spanKhaleej Times
(MENAFN - Khaleej Times) Bai Electricity and Water Authority or Dewa has announced its participation in Gitex 2014 to be held from October 12-16 at the Dubai World Trade Centre.Dewa will showcase its ...

 Jul 30 2014 - Sico first-half net profit jumps 166spanKhaleej Times
(MENAFN - Khaleej Times) Curities & Investment Company or SICO licensed by the Central Bank of Bahrain as a conventional wholesale bank announced its financial results for the second quarter of 2014 ...

 Jul 30 2014 - Taqa Arabia eyes Egypt expansionspanKhaleej Times
(MENAFN - Khaleej Times) Laa Holdings announced that its energy sector subsidiary Taqa Arabia aims to expand its network of fuel stations in Egypt through Taqa oil marketing company.The company ...

 Jul 30 2014 - Real estate to pick up from next week: Industry expertspanKhaleej Times
(MENAFN - Khaleej Times) Bai Land Department transactions exceeded Dh113b for H1 The real estate market in Dubai is expected to pick-up again from next week after a slowdown during the last couple of ...

 Jul 30 2014 - Memon to hand over five projects in 2014spanKhaleej Times
(MENAFN - Khaleej Times) Mpany working on Dh1.Memon Investments has planned to hand over five projects worth more than Dh600 million in the next five months and is also planning to launch five new ...

 Jul 30 2014 - ADFD funding in underdeveloped countries hit Dh61bspanKhaleej Times
(MENAFN - Khaleej Times) E development finance institution articulates the UAEs continued commitment to support the development process of emerging countries.An exterior view of power plant in ...

 Jul 30 2014 - UK and US preferred by Arab travellers: MarriottspanKhaleej Times
(MENAFN - Khaleej Times) E US takes the lead when it comes to bookings with 20 per cent of all reservations closely followed by the UK which accounts for 16 per cent.Marriott International has ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help