Category: Gulf Markets

Saudi Sukuk Delay Signals Investor Unease

Saudi Sukuk Delay Signals Investor Unease

Institutional names worldwide appear to be resisting an anticipated mega-sukuk to be offered by Saudi Arabia. If successful, the $10 billion sale would be the largest-ever, dollar-denominated Islamic bond offering. The problem is a complex hybrid structure, more commonly understood in Bahrain or Kuala Lumpur, than London or New York.  More ►

Gulf Investors Bloated on Property

Gulf Investors Bloated on Property

Arabs find affirmation in real assets in ways that Westerners gravitate toward financial assets. But that bias has created a massive property-development glut, with a sharp drop in portfolio-return expectations. One consultancy notes that the value of cancelled projects in the GCC vastly exceeds completed projects. There is  More ►

In Riyadh, Resolve Differs From Reality

In Riyadh, Resolve Differs From Reality

The news from Riyadh on the massive economic shake-up set to unfurl is classic Saudi. Vision 2030 is bold and brash, aligning with a “bigger is better” mindset. It begs sacrifice from a society that has come of age expecting the state to be the provider-of-perpetual-resort; it panders to nationalist sentiment with greater  More ►

GCC Offloads Once-Strategic Asset

GCC Offloads Once-Strategic Asset

Container shipping suffers from extreme overcapacity so a merger between Hapag-Lloyd and United Arab Shipping Company is welcomed realignment. But the real story here may be one of Arab government policy, not sector consolidation. The Kuwait-based firm is collectively owned by GCC member states, dating to an era when these  More ►