Gulf governments will rely less on bond markets this year – The National

Gulf governments will rely less on bond markets this year – The National

Gulf governments will rely less on bond markets this year. Cumulative gross financing needs of the GCC will narrow in 2020 on the back of prudent spending and higher oil prices, MUFG says. Cumulative gross financing needs of the Gulf states will narrow in 2020 on the back of stability in oil prices at relatively higher levels and more prudent expenditure policies of regional governments, Mr Khoman said.. At $52bn, Saudi Arabia tops the lists in the six-member economic bloc of GCC - home to about a third of the world's proven oil reserves - in terms of gross financing needs.. The UAE, the second-biggest Arab economy, which raised $10bn through a multi-tranche international bond deal in October 2019, has gross financing needs of $11.6bn in 2020.. The reason is that if Kuwait wants to issue debt, they have to pass the debt law.. Most sovereigns in the region remain well-positioned with ample buffers to withstand lower oil prices over time.. The International Monetary Fund this week downgraded its global growth forecast by 0.1 per cent to 3.3 per cent this year and by 0.2 per cent to 3.4 per cent in 2021.. "We may well be at peak uncertainty,