Middle East

DP World, the company responsible for operating Dubai’s ports, is buying back two of its outstanding bonds, becoming the fifth EM borrower to do so in September.

Challenges are rife across the banking industry in the Gulf. As banks struggle to keep up with technological innovation and the growth of foreign competition, domestic players told GlobalCapital what needs to be done to combat these existential threats.

Saudi Aramco, the state-owned oil company of Saudi Arabia, is confident that its exceptional financial position will allow its IPO to withstand geopolitical shocks such as the drone attack on the company’s oil facilities last Saturday, write Sam Kerr, Mariam Meskin and Francesca Young.

Last weekend’s attack on Saudi oil facilities drove up the oil price and caused a rush to safe haven assets, but investors say they expect the turbulence to be short-lived.

It isn't often that equity investors are asked to buy assets subjected to physical attack. The drone strikes on Saudi Arabia’s Abqaiq and Khurais oil facilities on Saturday could lead to Aramco demanding a big discount on any upcoming listing. The IPO market has suffered its fair share of geopolitical tumult of late, but this long and keenly anticipated deal could wind up being the riskiest of them all.

Four Middle Eastern borrowers are set to come to market next week, as issuers and investors alike shake off the volatility caused by the attack on Saudi oil facilities last weekend.

Gulf borrowers are being increasingly lured by the attractive terms offered in bond and sukuk markets, much to the detriment of international lenders, many of which are disgruntled by the disappointing loan volumes in the region.

Sources close to the listing of Saudi Aramco, the state-owned oil producer, have confirmed that they are working flat out to bring the Saudi company to market before the end of the year, despite attacks on its oil fields over the weekend.

Rating: Baa3/BBB-

The Turkish central bank delivered a 325bp cut to its main policy rate on Thursday. Although the move is larger than the 250bp consensus that had emerged ahead of the meeting, many analysts had been fearful that the move would be even more drastic — and the market appears to be rallying in relief.

Emaar Properties showed there is a strong appetite for sukuk paper with its trade this week, joined in the market by Bank of Sharjah, which was able to raise $600m, setting the stage for a third Middle East issuer to tap the market next week.

Multilateral development bank Arab Petroleum Investments Corp (Apicorp) is eyeing up the bond market for a potential benchmark issue, while a green euro bond may also be on the cards for the Saudi-headquartered bank, according to Sherif Ayoub, chief financial officer.