GCC sovereigns could borrow more if oil prices stay low | ZAWYA MENA Edition

GCC sovereigns could borrow more if oil prices stay low | ZAWYA MENA Edition:

If oil remains in its current price range of $55-$85 per barrel, the Gulf Cooperation Council (GCC) governments will have to spend more to boost their economies, ultimately forcing GCC sovereigns to borrow more, an investment outlook by First Abu Dhabi Bank noted. 

Low interest rates in dollars will add to the incentives of corporate and sovereign treasurers to issue bonds, according to Global Investment Outlook 2020.

In 2019, GCC countries issued a record $99.6 billion (until beginning of December) of bonds and sukuk (shariah-compliant bonds), the report said citing Bloomberg. 


“Whether or not a similar amount will be printed in 2020 will depend on the price of oil and how much oil OPEC countries agree to pump.”