Global fixed-income issuances rose by 20% y-o-y to an all-time high of USD 10.7 tn in 2024, according to a recent report (pdf) by Kuwait-based financial firm Kamco Invest, citing data from LSEG.

The MENA region’s bond issuances reached a three-year high in 2024 due to a surge in corporate issuances. Aggregate bond issuances rose by 39.4% y-o-y to 141.1 bn in 2024, with governments raising USD 68.9 bn and corporate issuances increasing by 77.4% y-o-y to USD 72.2 bn. GCC issuances dominated, accounting for 73% of the MENA total, hitting a record USD 103.4 bn, up 70.9% y-o-y.

The UAE led the region and the GCC in bond issuances, with USD 49.7 bn during the year, up from USD 31.2 bn in 2023, followed by Saudi Arabia, which issued USD 30.8 bn in bonds, and Qatar, which issued USD 16.8 bn. Saudi Arabia was the biggest issuer of fixed-income instruments in the GCC region with USD 84 bn, followed by the UAE at USD 61 bn.

Total sovereign bond issuances rose to USD 33.3 bn in 2024, up from USD 20.2 in 2023. Meanwhile, GCC corporate issuances rose to USD 70.1 bn in 2024 from USD 40.3 bn in 2023.

Sukuk are still on the rise: Global sukuk issuances hit a three-year high at USD 132.5 bn, up 9.3% y-o-y, with the GCC contributing USD 82.1 bn. Saudi Arabia took the top spot at USD 54.9 bn, driven by soaring government issuances, followed by Malaysia (USD 25.7 bn) and the UAE (USD 11.1 bn).

Expect a strong year for GCC issuances: While global fixed-income issuances are expected to cool amid higher yields and elevated global debt, GCC markets could see a 2H recovery as inflation and rates stabilize. A strong pipeline of projects, along with a dip in oil prices, is also expected to drive government issuances, while sukuk issuances are set to dominate, fueled by demand for sustainable finance and ESG trends.

EGX30

29,445

-1.2% (YTD: -1.0%)

USD (CBE)

Buy 50.51

Sell 50.64

USD (CIB)

Buy 50.52

Sell 50.62

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,098

+0.1% (YTD: +0.5%)

ADX

9,495

+0.4% (YTD: +0.8%)

DFM

5,228

0.0% (YTD: +1.4%)

S&P 500

5,827

-1.5% (YTD: -0.9%)

FTSE 100

8,248

-0.9% (YTD: +0.9%)

Euro Stoxx 50

4,977

-0.8% (YTD: +1.7%)

Brent crude

USD 79.76

+3.7%

Natural gas (Nymex)

USD 3.99

+7.8%

Gold

USD 2715.00

+0.9%

BTC

USD 94,922.60

+0.3% (YTD: +1.0%)

THE CLOSING BELL-

The EGX30 fell 1.2% at Thursday’s close on turnover of EGP 2.8 bn (27.9% below the 90-day average). Regional investors were the sole net buyers. The index is down 1.0% YTD.

In the green: Sidpec (+3.5%), Juhayna (+2.4%), and Ezz Steel (+0.7%).

In the red: Orascom Construction (-4.7%), Edita Food Industries (-2.6%), and GB Corp (-2.5%).

Tags: