GCC bond and sukuk issuances witness gains in 2020

GCC bond and sukuk issuances witness gains in 2020

Muscat: GCC bond and sukuk issuances witnessed year-on-year (y-o-y) gains for the second consecutive year in 2020 and trends for the coming year shows flat to a slight decline in issuances in 2021, according to a new report.“The year 2020 was an exceptional year with extreme events like the steep fall in economic growth rates across the globe and the GCC as well as the historic decline in oil prices that particularly affected the oil-exporting economies in the Gulf countries,” Kamco Invest said in its latest report.The Kuwait-based investment, strategy and research firm said that budget spending needs by the government are expected to drive sovereign issuances next year.However, with a significantly smaller expected deficit of around US$84.3 billion in 2021 as against US$127 billion in 2020, according to data from the IMF.Kamco expects government issuances to decline y-o-y in 2020. A number of Gulf Cooperation Council (GCC) governments have announced a cut in spending next year and to focus on priority projects.Meanwhile, issuances from Kuwait could be a game-changer for the region in 2021 if the government passes the debt law. Kuwait completely stayed away from the bond market in 2020 as the parliament failed to renew the debt