#Saudi Bond Borrowing Exceeds $20 Billion to Hit January Record - Bloomberg

Saudi Bond Borrowing Exceeds $20 Billion to Hit January Record - Bloomberg

Saudi Arabia sold more than $20 billion of international bonds since the start of the year, a record for a January as companies and banks join government fund raising.

Banks are increasingly turning to debt markets in response to tightening liquidity conditions, as slowing deposit growth and tougher capital rules make it harder to meet strong credit demand driven by the kingdom’s Vision 2030 agenda. Higher capital requirements due to come into effect this year will force banks to keep more funds on their balance sheets.

Companies are also taking advantage of attractive pricing and rising demand from Asian investors to reinforce their finances.

“Favorable market conditions in terms on rates and spreads, still strong demand and rising Asian investor interest” are among reasons for rising Saudi borrowings, Basel Al-Waqayan, fixed-income strategist at Bloomberg Intelligence, said.

The Saudi government raised $11.5 billion in early January through a dollar bond sale that attracted demand of $28 billion. Saudi Electricity and Saudi Telecom followed with $2.4 billion and $2 billion Sukuk bonds. Saudi National Bank, Riyad Bank and Al Rajhi Bank raised at least $1 billion each.

The kingdom signaled it would slow sovereign international bond sales this year, after years of voracious borrowing appetite which placed it among the heaviest issuers in emerging markets and the largest in the Gulf Cooperation Council.

The finance ministry plans to borrow $14 billion to $17 billion from international markets this year.

Yet Saudi Arabia has a history of overshooting its funding targets. Goldman Sachs Group Inc. predicts the Saudis will issue a record $25 billion of international debt this year.

Goldman Sachs, QIA Target $25 Billion Investment Partnership - Bloomberg #Qatar

Goldman Sachs, QIA Target $25 Billion Investment Partnership - Bloomberg

Goldman Sachs Group Inc. and Qatar Investment Authority have agreed to expand their strategic partnership in a move that could see the sovereign wealth fund commit a total of $25 billion with the Wall Street bank’s asset management arm.

QIA plans to commit the capital to a range of existing and new private market strategies as an anchor investor, as well as direct investment opportunities, according to a statement on Tuesday. Goldman Sachs, which has over $625 billion in alternatives globally, also said it will meaningfully grow its headcount in Doha, with the office becoming a strategic hub and the largest regional office for asset management.

The bank will also “look to provide strategic advisory services and guidance on capital formation, M&A opportunities and the development of Qatar’s economy and capital markets,” it said, including by “encouraging foreign direct investment opportunities and supporting the growth of key Qatari companies.”

Qatar’s route to economic diversification offers a “substantial opportunity to widen the state’s impact, global connectivity, and attractiveness as a multi-faceted investment partner,” Goldman Sachs Chief Executive Officer David Solomon said in the statement.

The deal is the latest illustration of the deepening links between large-scale private capital firms and sovereign wealth funds in the Middle East. The region has proven to be a key source of funding for private capital managers such as Apollo Global Management and Goldman Sachs Asset Management to scale their franchises.

It also shows that certain large investors are looking to partner with fund managers across a variety of products, rather than deploying capital with a series of specialists in different asset classes.

The deal “builds on our longstanding relationship with Goldman Sachs and provides QIA with premium deal flow in sectors critical to our investment strategy, including AI, fintech, digital infrastructure and private credit,” QIA CEO Mohammed Saif Al-Sowaidi said.

With $580 billion of assets under management, QIA is one of the world’s biggest wealth funds. It is expected to reap a windfall from an enormous expansion of Qatar’s gas output, potentially giving it more firepower to deploy cash.

Most Gulf markets gain ahead of earnings; #Saudi bourse flat | Reuters

Most Gulf markets gain ahead of earnings; Saudi bourse flat | Reuters

Most Gulf stock markets closed higher on Tuesday, with Dubai ending at its strongest level in almost two decades, as investors looked ahead to earnings and absorbed softer oil prices.

Saudi stocks, however, were flat to slightly lower, weighed by profit-taking after the recent rally.

Dubai's main share index (.DFMGI), opens new tab gained 0.5%, led by a 0.7% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 0.8% increase in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.

Further gains are possible if fourth-quarter earnings reports lift sentiment. Strong results could add momentum to a market that's already underpinned by healthy fundamentals and upbeat growth expectations for the year, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

Saudi Arabia's benchmark index (.TASI), opens new tab concluded flat after a 3.3% rally last week triggered by the government's that it would liberalise capital market access for foreign investors, starting next month.

Meanwhile, oil prices - a catalyst for the Gulf's financial markets - were steady as investors monitored U.S. President Donald Trump's tariff threats against European states opposing his push to acquire Greenland, while firmer global economic growth expectations and a weaker U.S. dollar gave a floor to prices.

According to Takieddine, cautious sentiment prevails as investors await upcoming fourth-quarter earnings reports following a few early releases. "Meanwhile, volatility in oil prices has slightly impacted sentiment, keeping the market's immediate direction unclear."

In Abu Dhabi, the index (.FTFADGI), opens new tab rose 0.3%, helped by a 0.3% gain in ADNOC Gas (ADNOCGAS.AD), opens new tab.

India signed a $3 billion LNG deal with the UAE on Monday, making it the UAE's top customer. ADNOC Gas will supply Hindustan Petroleum (HPCL.NS), opens new tab with 0.5 million metric tons per year for 10 years as both countries move to deepen trade and defence ties.

Elsewhere, Abu Dhabi Islamic Bank (ADIB.AD), opens new tab - the emirate's largest sharia-compliant lender - advanced 1.2%, ahead of its fourth-quarter earnings release due on Wednesday.

The Qatari index (.QSI), opens new tab edged 0.1% higher, supported by a 1.3% rise in petrochemical maker Industries Qatar (IQCD.QA), opens new tab. Qatar Gas Transport (QGTS.QA), opens new tab added 0.8%, ahead of its earnings announcement later in the day.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.9%, hitting a new record high.

Last week, the country received 1 billion euros from the European Union and is set to receive a total of 3 billion euros in two tranches in 2026, the International Cooperation Ministry said. The grant is part of a 5 billion euro ($5.87 billion) macro-financial assistance package from the EU.

#AbuDhabi: Mubadala CEO Backs AI, Private Credit Bets Despite Market Doubts - Bloomberg

Abu Dhabi: Mubadala CEO Backs AI, Private Credit Bets Despite Market Doubts - Bloomberg

Mubadala Investment Co.’s chief executive said the Abu Dhabi wealth fund has “a lot of conviction” in artificial intelligence, despite investor concerns about exuberance in the sector.

“Leaving the noise and the hype aside, I think we have a very clear view of what we think are the investable spaces within the technology space,” Khaldoon Khalifa Al Mubarak said in a Bloomberg Television interview in Davos on Monday. “Particularly when it comes to AI enablement, there are a lot of aspects that I think we believe in.”

AI companies are raising record sums at elevated valuations, while lenders across public and private markets are pouring capital into data-center projects, prompting some investors to warn of a potential bubble.

Hours earlier, the chief executive of the Qatar Investment Authority said the fund would take a more selective approach to AI investments in the year ahead.

Mubadala also remains confident about its private credit investments, even as the asset class faces increased scrutiny.

Returns from its private credit portfolio were in the mid-double digits in 2025, Al Mubarak said. “We remain quite bullish and firm on that space.”

His comments echo those of deputy group CEO Waleed Al Mokarrab Al Muhairi, who in December dismissed concerns about structural weaknesses in private credit, saying Mubadala’s investments were holding up well.

Investor unease intensified last year after a pair of collapses exposed losses at banks and investment firms. Lower returns and concerns about credit quality have since dampened enthusiasm for the $1.7 trillion market, prompting some investors to pull capital from private credit vehicles.

Amid rising geopolitical tensions, Al Mubarak said Mubadala aims to remain agnostic. “We try to pick our sectors right, we try to position ourselves with the right partners — west, east, north, south.”

He said the fund has historically been underinvested in Asia but is now expanding its footprint, citing strong performance in South Korea, Japan and China in 2025. “I think it worked very well for us.”