The Middle East has a chance of establishing a genuinely
diversified sovereign Eurobond market, as Egypt and Iran now
seriously consider raising money on the international capital
markets for the first time. Oman, which raised $250 million in
1996, is also planning a return to the market.
The critical time for these issues may come as early as next
January, after the end of the Islamic holy month of Ramadan.
Already bankers are testing the appetite among potential buyers.
And the reports are that while investors are expected to react
enthusiastically if Iran becomes the first Islamic fundamentalist
state to issue in the international debt markets, Egypt and Oman
will find it more difficult to attract interest, particularly if
they try to borrow at narrow spreads.
If these issues go ahead, they will add breadth to a market that
has until now been dominated by three countries and...
