Gulf Nations Issue Record $112B in Bonds YTD for Infrastructure
Gulf nations have issued $112 billion in bonds year-to-date, the highest ever for this point of the year, as they fund infrastructure projects to bypass the Strait of Hormuz. Demand remains robust, with Kuwait's recent $6 billion sale attracting $14.8 billion in orders.
Saudi Arabia, Kuwait, the UAE, and Qatar have collectively sold $112 billion in bonds so far this year, a record high for the period and more than triple the amount raised in 2022. The borrowing spree is financing infrastructure designed to reduce reliance on the Strait of Hormuz.
Planned projects include:
- New ports on the Red Sea and the Gulf of Oman
- Repairs and upgrades to older oil and gas pipelines
- Improvements to cross-country road networks
Kuwait alone raised $6.0 billion last week, with investor orders reaching $14.8 billion – more than double the issue size. The strong demand underscores resilient appetite for Gulf sovereign debt even at record supply levels.
Source: The Kobeissi Letter