Gulf loan market subdued but government-related entity deals surge – ADIB

Gulf loan market subdued but government-related entity deals surge – ADIB

DUBAI- Overall loan activity in the Gulf is about 20% to 25% lower than a year ago, but deals by government-related entities have surged in 2020 on the back of acquisitions and infrastructure projects, Abu Dhabi Islamic Bank's head of corporate finance and investment banking said on Thursday.The subdued loan market contrasts with international bond issues from the region, which are on track for a record year. Governments have made up the bulk of this year's issuance, with the value of their bond sales already surpassing last year's total.Amir Riad, ADIB global head of corporate finance and investment bank, said Gulf government-related entity (GRE) deals are up by about 40%, with ADIB's loan activity around 20% higher."Based on the statistics we see, the overall market is down 20-25% if you