GCC fixed income market ‘creditworthiness rises’

GCC fixed income market ‘creditworthiness rises’

Some 97% of European institutional investors and wealth managers agree that the economic and fiscal reforms implemented by the Gulf Cooperation Council (GCC) countries have increased the region’s creditworthiness.

Of those surveyed, 47% ‘strongly agree’ with this view, according to research by European ETF provider Tabula Investment Management Limited.

Meanwhile, one in three (36%) surveyed strongly agree that region’s large foreign currency reserves will help it maintain stable economic growth and lower bond risks when compared to other emerging markets. A further 61% indicate that they generally agree with this view.

GCC bond ETF

Earlier this year, Tabula launched the first Gulf Cooperation Council (GCC) government bond ETF. The Tabula GCC Sovereign USD Bonds UCITS ETF (TGCC LN) provides exposure to a broad portfolio of USD-denominated government bonds issued by the six GCC countries (Saudi Arabia, the UAE, Qatar, Oman, Bahrain and Kuwait).

Given the current market volatility and continued global economic uncertainty, 46% of institutional investors and wealth managers interviewed strongly believe that now is a favourable time for investors to reassess asset allocation decisions to increase diversification across regions and instrument types.

Finally, an overwhelming 96% of professional investors surveyed, firmly believe that as the GCC region undertakes numerous initiatives to diversify revenue streams