Diversification on the horizon

Next year the Middle East's sovereign bond markets look likely to expand in scope, with new issuers coming in longer maturities and larger amounts

       
Micky Chebli

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.

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