Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg

Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg:

The Gulf Arab states are proving to be fertile ground for bond investors.


Yield-hungry global funds are plowing into regional bonds at the expense of local stock markets, where liquidity has dwindled following the 2014 oil-price crash. The last initial public offering in the United Arab Emirates was in 2017.

Once debt-averse, the petrostates of the Gulf have pivoted to borrowing to finance ballooning budget deficits. They’ve tried to cut capital spending and slash subsidies -- steps that helped shore up finances but spelled trouble for equity investments as austerity undermined consumer spending and credit growth.