Citigroup Sees Asset Sales Boosting $47 Billion Gulf Debt Binge - Bloomberg:
Oil-rich Gulf nations may turn to asset sales to complement an almost $50 billion debt spree to support economies rocked by the coronavirus pandemic and the collapse in crude prices, according to Citigroup Inc.
Countries including Saudi Arabia and the United Arab Emirates have “really attractive” government-owned assets, which could be sold to the public or partnered with other investors, Atiq Rehman, head of Citigroup Inc.’s emerging-market cluster for Europe, the Middle East and Africa, said in an interview.
“There are opportunities obviously on that front,” he said. “There is also high investment-grade rating for their ability to raise substantial amount of international debt at very attractive prices. There is capacity to borrow more.”
Gulf governments are looking at ways to shore up their economies as the coronavirus pandemic and a historic crash in oil prices add to pressure on already strained finances. Unlike in Europe, most major entities in the region are still state owned. Saudi Arabia last year raised $29.4 billion by selling less than a 2% stake in the world’s biggest oil producer, Saudi Aramco.
Oil-rich Gulf nations may turn to asset sales to complement an almost $50 billion debt spree to support economies rocked by the coronavirus pandemic and the collapse in crude prices, according to Citigroup Inc.
Countries including Saudi Arabia and the United Arab Emirates have “really attractive” government-owned assets, which could be sold to the public or partnered with other investors, Atiq Rehman, head of Citigroup Inc.’s emerging-market cluster for Europe, the Middle East and Africa, said in an interview.
“There are opportunities obviously on that front,” he said. “There is also high investment-grade rating for their ability to raise substantial amount of international debt at very attractive prices. There is capacity to borrow more.”
Gulf governments are looking at ways to shore up their economies as the coronavirus pandemic and a historic crash in oil prices add to pressure on already strained finances. Unlike in Europe, most major entities in the region are still state owned. Saudi Arabia last year raised $29.4 billion by selling less than a 2% stake in the world’s biggest oil producer, Saudi Aramco.
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