GCC

Saudi Aramco’s decision to make its IPO a local affair, with no international marketing, is a lacklustre end to what is nonetheless a huge capital markets event. Unrealistic objectives and hype have taken the shine off a monumental deal.

The IPO of Saudi Aramco will be a local affair after international investors made clear that they wanted a greater concession for the oil giant than the Saudi Arabia was willing to give.

Flourishing conditions in the sukuk market stepped up another gear this week as Qatar International Islamic Bank priced an additional tier one bond that one of its leads claimed was the tightest ever such trade from the Gulf Cooperation Council states.

One Middle Eastern bank is in the market with a sukuk additional tier one note, while a second announced it will go on the road for its own AT1.

Equity capital markets investors are waiting eagerly for the price range for Saudi Aramco's IPO and are hoping the Saudi state has listened to the feedback they have given it so far.

Saudi Aramco released an initial IPO prospectus on Sunday and some, mainly in the mainstream financial press, were outraged that it contained no details on price or deal size. However, a full two week investor education process is a perfectly normal feature of IPOs and the fact that Aramco is doing its deal by the book is a good thing.

Islamic Development Bank has spurred momentum in the green sukuk market, as it announced its debut, a euro deal, in the format this week.

Intercontinental Exchange on Monday announced that it will launch a new trading venue in Abu Dhabi to offer futures contracts referencing Murban crude oil.

National Bank of Bahrain has made a bid to buy a majority stake in Bahrain Islamic Bank, of which it already owns 29%. The move is the latest in a seemingly endless round of consolidation between Gulf banks, driven by the effort to become more competitive in what many have called an oversaturated banking market.

Saudi Arabia is gathering feedback on how investors see the value of its unique oil company, Aramco, through an army of investment banks. It will have to choose between two priorities: pushing for the crown prince's cherished $2tr valuation or the potentially bigger prize of attracting a wide range of international investors, writes Sam Kerr.

Qatar International Islamic Bank mandated banks on Wednesday for an AT1 sukuk, one day after Masraf al Rayan (MAR), another Qatari Islamic bank, had achieved tight pricing on its senior unsecured offering in the format. But another Middle Eastern deal, in Reg S/144A format, was pulled this week.

Abu Dhabi will launch a futures contract for its state-owned oil company’s onshore crude oil product in 2020, after a decision this week by the country's petroleum regulator.