Sukuk and bond issuances by GCC countries grew 38% y-o-y to USD 75.5 bn in 1H 2024 with Saudi accounting for almost half of all sukuk and bond issuances out of the Gulf during the period, according to data from Kuwait Financial Centre (Markaz). The first six months of 2024 saw 173 primary debt issuances in the GCC, up from 130 in the same period last year.

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Saudi issues led the market, raising USD 37 bn through 44 sales to account for 49% of the total amount raised in the GCC, according to Markaz. The UAE came second with a 27% share of issuances, raising USD 20.6 bn in 64 transactions.

How other GCC peers fared:

  • Qatari issuers came in third with USD 10.5 bn raised across 39 transactions;
  • Bahraini raised USD 3 bn from 4 issuances, Kuwait raised USD 2.6 bn from 15, and Oman raised USD 1.7 bn from an undisclosed amount of issuances.

Sovereign vs. Corporate: Sales by sovereign entities in the GCC grew 77% y-o-y during the period to USD 41.5 bn, accounting for 55% of total value of GCC primary issuances. The remaining 45% of primary issuances out of the GCC came from corporate issuers, which raised USD 34.0 during 1H 2024, marking a rise of 8% y-o-y.

Sales by issuers in the financial sector raised USD 28.8 bn, good for a 38% share of all funds raised in the period.

Conventional issuances made up 65% of total primary issuances in the Gulf at USD 48.8 bn — that’s up 56% y-o-y. Sukuk issuances totalled USD 26.6 bn to account for 35% of total issuances.

USD-denominated issuances accounted for 76% of total bond and sukuk sales, while SAR-denominated sales made up 12% of the total. (That’s in line with estimates by S&P Global, which said Saudi sukuk issuances more than tripled y-o-y in 1H 2024 to USD 10 bn.)

MARKETS THIS MORNING-

Asian shares opened lower this morning as investors around the world absorb the news that Joe Biden has dropped his bid for re-election — but futures for major Wall Street benchmarks were up across the board in overnight trading. In Europe, futures for the CAC 40 were the only losers overnight — left-wing politicians there are still trying to figure out how to put together a government after defeating a challenge from the far-right in snap elections.

EGX30

28,783

+0.5% (YTD: +15.6%)

USD (CBE)

Buy 48.32

Sell 48.46

USD (CIB)

Buy 48.31

Sell 48.41

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,203

+0.1% (YTD: +2.0%)

ADX

9,246

+0.2% (YTD: -3.5%)

DFM

4,181

+0.3% (YTD: +3.0%)

S&P 500

5,505

-0.7% (YTD: +15.4%)

FTSE 100

8,156

-0.6% (YTD: +5.5%)

Euro Stoxx 50

4,827

-0.9% (YTD: +6.8%)

Brent crude

USD 82.63

-2.9%

Natural gas (Nymex)

USD 2.13

+0.1%

Gold

USD 2,447

-2.3%

BTC

USD 67,655

+0.5% (YTD: +60.6%)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 4.3 bn (8.7% above the 90-day average). Local investors were the sole net sellers. The index is up 15.6% YTD.

In the green: Qalaa Holdings (+13.0%), Abu Qir Fertilizers (+5.7%) and Ezz Steel (+3.7%).

In the red: Orascom Development (-2.8%), Fawry (-1.7%) and Talaat Moustafa Group (-1.6%).

CORPORATE ACTIONS-

#1- Emaar acquisitions to move forward: Emaar Misr’s extraordinary general assembly approved its proposed acquisitions of Albro North Coast for Developments and Skytower for Real Estate Development, the company said in an EGX disclosure (pdf).

#2- Integrated Diagnostics Holdings (IDH) ups delisting buyback price to EGP 20 per share from EGP 18.62 after its extraordinary general assembly approved the move, according to an EGX disclosure (pdf). This comes after the EGX deemed the initial price too low.

#3- Egyptian Media Production City (EMPC) is paying out a dividend of EGP 0.50 per share on its 2023 earnings, according to an EGX disclosure (pdf). The dividends will be distributed on 8 August.

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