Capital markets - Castlereagh

Qatar bond plans will be market test for opportunistic Gulf borrowers

13 May 2020

**Written and disseminated to select contacts on April 7**

Qatar is set to become the first Gulf country to tap global bond markets since oil prices plummeted last month. In spite of a low-oil-price environment and COVID-19-related global economic slowdown, the country on Tuesday began marketing five- 10- and 30-year bonds, which it hopes will raise at least $5bn. The bond is expected to go on sale later today.

Rachna Uppal | Senior Analyst | r.uppal@castlereagh.net

Kuwait debt law delay could weigh on economic recovery post COVID-19 outbreak

08 Apr 2020

**Written and disseminated to select contacts on March 18, 2020**

A new debt law allowing Kuwait to tap global debt capital markets is unlikely to be approved and implemented in the near future, although the impetus to do so may gain traction as a global rout on oil prices and economic lockdown from the COVID-19 pandemic dents revenues, further expanding the state’s budget deficit.

Rachna Uppal |Senior Analyst Business & Finance Gulf | r.uppal@castlereagh.net

Gulf bond markets: issuers take advantage of strong demand amid rising geopolitical tensions

09 Aug 2019

The six Gulf Arab states, incorporating several of the biggest, and wealthiest, players in the global oil and gas markets, cannot seem to stop selling debt. And investors, hunting for yield in a global low rates environment, are driving demand for more bond issues from the region. Despite the recent escalation in geopolitical tensions, issuance is likely to remain strong but restricted to sovereign or state-owned entities, able to borrow more cheaply.

Turkish power sector looks for COVID-19 restructure

2 Jun 2020

Jon Gorvett
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.

Climate change and migration – the next big challenge for MENA?

22 May 2020

The level of disruption caused by the coronavirus pandemic has revealed how ill-prepared governments and international institutions are for anything beyond their routine activities. When normality is once again restored, the world must learn the lessons from today’s events in order to prepare for, and mitigate, the worst effects of an even bigger challenge: climate change and global warming. For the MENA region, one of the most pressing questions will be how to handle flows of people displaced by climate change.

How will MENA handle mass urbanisation?

19 May 2020

Perhaps more than anywhere else in the world, rapid urbanisation in the MENA region will create significant investment opportunities for a variety of domestic and foreign firms. North Africa will see high-volume, low-tech developments, while capital-intensive projects such as rail and smart cities will be concentrated in higher-income nations in the Gulf. Elsewhere, a widening urban infrastructure deficit will stoke social instability.