The aggregate primary issuance of bonds and sukuks by GCC entities, including Central Banks local issuances, GCC sovereign and corporate issuances, totaled $174.17 billion in 2017, a 3.96 per cent increase from the total amount raised in 2016 according to the latest report from Kuwait Financial Centre (Markaz).
Central Bank local issuances (CBLIs) are fixed income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity.
During 2017, a total of $69.90 billion was raised by the GCC central banks, namely the Central Bank of Kuwait, Bahrain, Qatar, and Oman. (The only publically available information is from the Central Bank of Bahrain, the Central Bank of Kuwait, the Central Bank of Oman, and the Central Bank of Qatar).
The Central Bank of Kuwait raised the highest amount with KWD10.93 billion ($36.179 billion), representing 51.76 per cent of the total amount raised by CBLIs through 70 issuances, followed by the Central Bank of Bahrain, which raised a total of BHD5.39 billion ($14.33 billion).
GCC bonds and sukuk market
The GCC bonds and sukuk market is composed of bonds and sukuk issued by GCC Sovereign, corporate entities and financial institutions, for financing purposes in local and foreign currencies. A total of $104.26 billion was raised in the GCC bonds market in 2017, a growth of 1.78 per cent from $102.44 billion raised in 2016.
On a quarterly basis, the fourth quarter of 2017 recorded the highest value of issuance with $39.44 billion raised through 59 issuances while the third quarter was the most subdued as $17.87 billion was raised through 45 issuances.
Saudi Arabia was the leading issuer in 2017, raising $41.60 billion through 20 issues and representing 39.9 per cent of the total value raised by the GCC issuers during the year.
UAE-based issuers raised $32.61 billion during 2017, up by 35 per cent as compared with $24.3 billion raised in 2016 and representing 31.3 per cent of the total market.
Kuwait entities represented 10.4 per cent of the total issuances, raising $10.83 billion as compared with $4.52 billion raised in 2016. Omani issues represented 7.8 per cent of the total value of issuances, raising $8.12 billion through 8 issues.
Amidst the regional crisis, Qatari entities raised $6.18 billion from 62 issues; however, the primary issuances dropped by 67.8 per cent compared with $19.22 billion raised in 2016. Bahraini entities represented 4.7 per cent of the total issuances, raising $4.90 billion through six issues.