A burst of debt deals in the Gulf has pushed issuance to a record in the region as borrowers rush to shore up their oil-dependent budgets before the U.S. presidential vote.
Gulf Cooperation Council sovereigns and corporates have sold $102 billion in debt so far this year, already exceeding the highest full-year figure. Junk-rated Oman was in the market on Wednesday with a sale of seven and 12-year dollar notes, alongside offerings by Qatar Islamic Bank SAQ and the Investment Corporation of Dubai.
“The last window of opportunity” before the presidential contest between Donald Trump and Joe Biden is galvanizing issuers, said Sergey Dergachev, a money manager at Union Investment Privatfonds GmbH in Frankfurt. A “worst case” could see a contested result or more social unrest, which would be “very bad for risk sentiment,” he said.
For Saudi Arabia and the UAE, a Biden White House could see a cooling in relations, with greater scrutiny of human rights and a restoration of the diplomatic norms bypassed by Trump.
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