UAE, Saudi, and Qatar: The Top Contributors of MENA Debt Market Activity Amounting to $90 Billion

MENA region's DCM (Debt Capital Markets) tallied $90.9 billion throughout the first three quarters of 2021. It is 8% lower than the similar period last year as per Refinitiv data.

Who generated the highest revenue?

The United Arab Emirates generated the most revenue from DCM-related transactions with a total of $25.8 billion, following close behind Qatar, with $20 billion. Saudi Arabia, Egypt, and Oman ranked third through fifth, respectively.

Investment-grade corporate debt was up $62.3 billion this year, which is 68% of total DCM proceeds and the highest since the commencement of the record in 1980, as stated by the global data provider.

The financial industry was the top performer from the previous quarter so far this year, with $37.9 billion in proceeds in 2021.

Some of the Prominent Deals to look at

• Qatar Petroleum Corporation's $12.4 billion bond sale back in June is the highest one so far.
• In the second spot, there is Saudi Aramco's $6 billion Sukuk to fund the company's dividend payouts.
• The debut deal of the oil giant worth a $12 billion bond in 2019 was followed by a five-part transaction of $8 billion in November last year for funding its dividend.

Standard Chartered, HSBC, and J.P. Morgan lead the MENA Debt Capital Market League

• For 2021's first three quarters, Standard Chartered secured the top rank in the debt capital market league of MENA as per Refinitiv data. In the segment of related activity, it comprised $10.6 billion, which accounts for 12% of the market share.
• HSBC stands at the second spot with a market share of 11%, worth $10.2 billion
• J.P. Morgan managed to secure the third position with $9.04 billion, amounting to 10% of the market share.

Key Highlights of Chief Investment Office Report by USB

The latest Chief Investment Office Report by USB focusing on the evolving market bonds says that Middle Eastern Sovereign bonds' position has upgraded considerably. The credit for this goes to the following factors:

• 37% hike in crude oil prices
• Increase in vaccination rates
• Reform measures in the region's crucial countries

UBS is optimistic about the region; there is the existence of risks such as:

• Sluggish global growth
• Stringent monetary policies by chief central banks
• Lower rates of commodity
• Regional stress
• Strict actions by the Chinese Regulatory
• Strength of the US dollar

However, weak reforms or an unmaintainable policy mix can be potential threats to selected countries.