Companies in the Middle East are heading to market in great numbers with bonds and sukuk, as they rush to take advantage of the end of stimulus measures in the US and the region's political turmoil changes course.
A combination of government bond purchases and historically low interest rates have flooded the world economy with cheap liquidity, creating an attractive environment to raise funds on bond markets.
The second tranche of quantitative easing, the Federal Reserve's asset purchase programme, is expected to expire on June 30. A steadily increasing number of bond and sukuk issuances in the region would also encourage companies that held off from issuing during the region's recent political unrest, said Christopher Niehaus, the regional chief executive officer for UBS Investment Bank.
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