Gulf markets: the liquidity well runs dry

There are two trends underway in the Gulf capital markets, individually interesting but problematic in combination. On the one hand, a low oil price is finally pushing sovereigns back to the debt capital markets, often for the first time in years, with spillover effects that will increase the need for external funding for everyone from the banks to private companies. On the other, both local and international liquidity for debt funding from the region is ebbing.