Headline Risks and Debt Capital Market

Sukuk and conventional financing share the same features that could make them vulnerable to global factors. One thing to note is that international investors should consider economic fundamentals over the headline risks that come from the Middle East.

In our region (Gulf Cooperation Council (GCC)), active portfolio managers, who are on the ground, would tend to benefit more than the passive ones (this is due to the fact that most new investors in our region can easily be moved by negative sentiments and geopolitical risks). And when that happens, we can see ‘smart money’ coming in and picking up certain GCC bonds/Sukuk at a great value.

Reaching Banks’ Lending Limit Pushes Borrowers Toward Debt

The main drivers...