The outlook for the Gulf states' corporate market is positive this year and could double in size over the next 12 to 18 months, a financial analysis firm has predicted.
The Arabian Gulf Corporate Bond Market: 2007 Review and 2008 Outlook from Moody's Investors Services predicts that the market has the potential to reach issuance of $50 billion in this timescale.
This is double last year's figure of $23.7 billion, which was in turn a 63 per cent increase from 2005.
Of last year's figure close to half was in the form of Shariah-compliant sukuk, and this is also expected to make much of the issuance this year, report author Philipp Lotter Dubai/DIFC based senior credit officer at Moody's, said.
He explained: "Further record issuance was achieved in 2007, although we estimate that up to $10 billion were bridged or postponed in the later part of the year due to unattractive markets.
"This pent-up financing demand, and sustained pressures from massive infrastructure expansion will continue to drive the market for sukuk and conventional bonds in equal measure."
