The European debt crisis is hitting home in the oil-rich Gulf as companies struggle more than ever to hammer out large-scale restructuring deals with international banks, prompting concerns over a wall of refinancing required this year.
With the prospect of about $25bn in bonds and sukuk maturing in the region this year, bankers are becoming increasingly concerned that casualties will emerge.
A scarcity in dollar funding as European banks retrench from riskier markets, as well as limited and expensive access to debt capital markets, is combining to create serious refinancing problems, even as oil prices remain well above the budget break-even figures for their governments.
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