Bonds in the Gulf Arab oil exporters are outperforming fixed income markets in many other countries as the world's economic climate darkens, suggesting the Gulf may have turned a corner in convincing investors of its financial stability.
Gulf bonds were hit hard between 2009 and 2011 when the initial stages of the global financial crisis burst credit and real estate bubbles in the region.
Now the Gulf is threatened by another wave of the crisis: weak U.S. and Chinese economic data and Europe's debt problems dragged Brent crude oil as low as $95 a barrel this week, the lowest since January 2011, from around $125 early this year. In a region where energy exports are some 30-50 percent of nations' gross domestic product, that will have a major impact.
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