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Gulf countries issued $57 billion worth sukuk last year

Gulf countries

The value of the sukuk issued by the Gulf states during the past year amounted to $57 billion.

Government issuances declined during the past year, after rising for two consecutive years, while corporate issuances witnessed a rise for the sixth consecutive year.

Crude oil prices, which averaged to the highest levels recorded in three years at $70.9 per barrel, were among the main reasons for the decline in government issuances in the Gulf states during 2021.

Gulf countries

On the other hand, the recovery of economic activity after restrictions related to the Coronavirus pandemic encouraged private sector investments. This led to an increase in issuances during the year, according to a report issued by Kamco Invest, on the fixed income market in the Gulf countries for the year 2021.

In terms of the type of debt instrument issued, sukuk issuances in the Gulf countries increased for the third year in a row, reaching their highest levels ever, reaching $57.2 billion in 2021, compared to $52.1 billion in 2020.

On the other hand, bond issuances declined for the first time since 2018 to reach $89.5 billion during 2021, compared to $99 billion in 2020.

The total value of Gulf issuances amounted to $146.7 billion in 2021, compared to $151.1 billion in 2020, according to the Kuwaiti newspaper.

Middle east

Bond issuances in the Middle East and North Africa increased for the third consecutive year in 2021, reaching a new record.

The growth of issuances was mainly driven by the issuance of Egyptian government bonds, which hit a record high during the year.

The total bonds issued by the countries of the Middle East and North Africa increased by 2.2% to reach $176.2 billion in 2021, compared to $172.4 billion in 2020.

While bond issuances by the Gulf Cooperation Council countries amounted to $89.5 billion in 2021 compared to $99.0 billion in 2020, the non-Gulf countries in the Middle East and North Africa recorded a growth of 18.1%. The value of their issuance reaching $86.7 billion in 2021 compared to $73.4 billion in 2020.

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