Episode 30- Inside the Gulf bonds bonanza

According to Fitch, the GCC debt capital market has soared to nearly $1 trillion. In 1H24, GCC primary debt issuance reached $75.5bn compared to $54.8bn in the same period last year, representing a 38% increase, according to Markaz, a Kuwait-based financial institution.

 In the first five months of 2024, emerging market dollar debt issuance—excluding China—topped $200 billion, with Saudi Arabia leading at 18.5% and the UAE at 9%.

This growth highlights the GCC’s rising role in global bond markets, but it also brings challenges like fluctuating US interest rates and oil price swings.

In our 30th episode, we spoke to Abdul Kadir Hussain, Head of Fixed Income Asset Management at Arqaam Capital. With over 30 years of experience, he explains why the GCC is so attractive to investors and the key risks to watch for. 

In this episode we covered several topics including:

• Why the GCC is an important part of the EM bond universe
• Thoughts on AAOIFI standards on the Gulf's sukuk market
• Some of the risks facing EM and GCC bonds

Email us: hassan@majlisandmarkets.com

Intro theme song-Arab and Muslim by StockMusic via Pixabay

Chapters

• 0:53 Monologue intro
• 1:49 Beginning of discussion
• 2:22 Abdul Kadir's background
• 11:00 Seeing EM distressed debt situations
• 12:33 What does a typical day look like?
• 15:23 Why are GCC bonds important to EM?
• 21:56 Development of GCC debt markets
• 29:34 Comparing GCC valuations to other regions
• 32:47 AAOIFI standards on sukuk market
• 38:22 Direction of sukuk market
• 39:52 Risks facing GCC and EM bonds
• 43:51 Upcoming projects
• 45:11 Social media accounts