Middle East

Investors are keeping a watchful eye over the escalating tit-for-tat threats between the United States and Turkey. Asset prices have so far remain unmoved, but analysts have warned that any move to impose tougher sanctions could be catastrophic.

It has been a busy week so far in CEEMEA bonds this week with three deals sold. Meanwhile, in the loan market, sanctions threaten the pricing on Turkey bank loans.

Aldar Investment Properties has raised a 10 year $500m sukuk, achieving a tightening of 35bp beyond initial guidance.

The Emirate of Sharjah is planning a benchmark 10 year Reg S senior unsecured sukuk.

Turkey’s banks have begun their second refinancing season of the year, though increasing political uncertainty, which has led to new US sanctions on Turkey, could potentially jeopardise primary and secondary pricing levels for the borrowers, according to bankers.

Equity investors expect there will be an IPO of Saudi Aramco this year as long as Saudi Crown Prince Mohammed Bin Salman (MBS), and the Saudi government, go ahead with the deal at a valuation below his $2tr aim. But some are concerned the Saudi's will push ahead with whatever value they deem the company is worth, regardless of initial feedback.

Turkey’s decision to launch a military offensive in Syria has reopened the possibility of sanctions from the US, with its Senate introducing a bill to do so on Wednesday. However, the investor community is doubtful about their impact.

Middle Eastern banks returned to the Swiss franc market this week after an absence of almost five months with trades from two Gulf banks providing some respite for yield-starved investors.

Dar Al-Arkan, a Saudi Arabia-based real estate developer, raised $600m on Wednesday with a February 2025 sukuk, defying market volatility to offer little in the way of new issue premium.

Dar Al-Arkan, a real estate development company headquartered in Saudi Arabia, is in the market for a five year sukuk benchmark.

US president Donald Trump’s salvo of tweets against Turkey, which threaten economic sanctions, have had only a muted effect on the Turkish curve, as investors' scepticism towards Trump grows.

Aldar Investment Properties hit screens on Tuesday to announce a roadshow for a 10 year sukuk deal.