Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

New UAE, Oman bond rules to boost GCC debt market  Join our daily free Newsletter

MENAFN - Khaleej Times - 01/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) New bond rules and initiatives by the UAE and Oman are expected to give a further impetus to GCC debt securities market growth in 2014, market analysts said



The UAE, which remains in the lead with the largest portfolio of outstanding debt securities followed by Qatar, issued last month new rules for the issuance and trading of covered bonds. The move, a major step towards developing UAE's debt market, seeks to provide commercial banks a new source of funding



Covered bonds, which are backed by cash flows from mortgages or public sector loans, are considered relatively safe because investors have a preferential claim on the assets in the event of a default



The Securities and Commodities Authority of the UAE has set conditions for banks and other companies to obtain licences allowing them to issue covered bonds



Recently, the Capital Market Authority of Oman issued draft sukuk regulations to promote the Islamic debt market. On top of this, the Oman government also plans to float 520 million worth of sovereign sukuk in the domestic market



In 2013, growth in stock of outstanding debt securities in the GCC remained solid driven by low rates and rapid economic growth, National Bank of Kuwait said



Issuance growth by the private sector was particularly strong, led by non-financial corporates in Saudi Arabia. Banks too continued to be a large source of new debt issues spurred on by regulatory changes. "New rules allowing covered bonds in the UAE and sukuk debt in Oman could see further strength in debt securities growth in 2014," NBK said



According to IFR, a Thomson Reuters unit, bond issuance from the Gulf is set to surge in 2014 on the back of heavy infrastructure spending and refinancing needs even as Abu Dhabi sovereign is expected to return to the market after an absence of nearly five years



Morgan Stanley has predicted that total bond and sukuk issuance for 2014 would be between 40 and 45 billion. If sukuks represent the same proportion of total issuance in 2014 as it did in 2012, GCC Sukuks would account for between 27 and 30 billion, a growth of between six and 18 per cent over 2013 issuance level



In 2013, outstanding bonds and sukuk issued by GCC entities reached 257 billion, up 16.4 per cent from a year ago, in line with performance over the past few years



"The UAE remains in the lead with the largest portfolio of outstanding debt securities followed by Qatar. The latter could lose its second place position in 2014 with 19.4 billion worth of public sector debt due to mature this year," said NBK



The bank noted that the issuance of new bonds and sukuk was flat in 2013 at 56.4 billion. "Bearish market sentiment in the wake of mid-year speculation that the Federal Reserve might begin to taper its bond buying program may have dampened issuance somewhat. Despite this, 2013 saw strong activity from the private sector, with the non-financial sector in Saudi Arabia accounting for most of the growth.



Issuance by public sectors and banks was lower, NBK pointed out in a report. "Despite lower issuance by the region's banks in 2013, the sector continued to see rapid growth in outstanding debt. Issuance topped 15 billion, with the stock of outstanding public sector debt reaching 65 billion by the end of the year



"The sector has been increasingly looking at debt markets for funding in response to increased regulations requiring liabilities with longer maturities. Also, some banks started to issue bonds that meet new capital adequacy rules," NBK said



NBK observed that the average maturity of outstanding GCC bonds remained steady at 5.8 years.



Regional interest rates moved higher in 2013, but are down from levels seen around the middle of the year. Sovereign bonds that mature in 6-7 years for Dubai, Qatar, and Abu Dhabi have seen their yields rise by 50 to 60 basis points from a year ago, to settle at 4.46 per cent, 2.72 per cent, and 2.42 per cent, respectively

 


Khaleej Times




  MENA News Headlines
 Mar 3 2015 - Cruise liner traffic bound for Abu Dhabi to grow 25 percentMENAFN
(MENAFN) An increase of 25 percent in cruise liners calling at Zayed Port will help to lift the number of cruise tourists by 50 percent this season, The National reported.This season above 94 vessels ...

 Mar 3 2015 - UAE non-oil business growth declines in FebruaryMENAFN
(MENAFN) Business activity growth in the UAE non-oil private sector decreased to a five-month low in February but remained strong and above the average for 2014, a corporate survey showed, The ...

 Mar 3 2015 - Kuwait Fund grants USD23.8m to irrigation project in Lao RepublicMENAFN
(MENAFN) Kuwait Fund for Arab Economic Development (KFAED) has signed a loan agreement in the city of Vientiane with the Democratic Republic of Lao, whereby the Kuwait Fund will offer the government ...

 Mar 3 2015 - Bahrain to launch USD22b development projectsMENAFN
(MENAFN) The government of Bahrain will be carrying out giant development projects with a value exceeding USD22 billion, Minister of Information said, KUNA reported.Bahrain is continuing with its ...

 Mar 3 2015 - KFAED finances USD13.47m loan to BelizeMENAFN
(MENAFN) Kuwait Fund for Arab Economic Development (KFAED) provided a USD 13.47 million loan to Belize to help in a road restoration project, a statement by the fund showed, KUNA reported.The ...

 Mar 3 2015 - FDI in Qatar posts USD30.65bMENAFN
(MENAFN) Foreign direct investments (FDI) inflow to Qatar registered USD30.65 billion at the end of 2012, a 1.2 percent growth from a year ago. Though the FDI has targeted various economic activities ...

 Mar 3 2015 - Oman's Raeco to invest USD395.75m for power expansionsMENAFN
(MENAFN) A total of USD395.75 million will be invested by Rural Areas Electricity Company (Raeco) in the next three years to raise the power generation capacity, transmission lines and distribution ...

 Mar 3 2015 - Kuwait Investment to cut US investmentMENAFN
(MENAFN) The Kuwait Investment Office (KIO), the London branch office of sovereign wealth fund Kuwait Investment Authority, is gradually reducing its overweight stance on US assets after keeping that ...

 Mar 3 2015 - Oman's NDC hits sales revenue of USD60.47m in 2014MENAFN
(MENAFN) National Detergent Co. (NDC), one of the leading FMCG companies in the sultanate, has posted total sales revenue of USD60.47 million for full-year 2014, compared with USD56.13 million a year ...

 Mar 3 2015 - 100 per cent rise in FDI expected this yearKhaleej Times
(MENAFN - Khaleej Times) Egypt expects 100 per cent increase in foreign direct investment, or FDI, during the current fiscal year compared to last year, Investment Minister Ashraf Salman said on ...

more...


 






Google

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help