According to HSBC Holdings plc, nations of the Gulf Cooperation Council (GCC) may face some difficulty in refinancing $94bn worth of debt by 2018, after being impacted by falling crude oil prices, slowing growth, rising rates and rating downgrades.
GCC countries, dominated by United Arab Emirates and Qatar, face $52bn of bonds and $42bn of syndicated loans maturing in the next two years. These countries also have a cumulative fiscal and current account deficit of $395bn over the period. Further, Gulf nations have a total of $610bn of FX-denominated debt and syndicated loans outstanding currently.
HSBC is confident that these nations would be able to tackle the issues of maturing debt and fiscal deficits through a raft of issuances of sovereign debt in the near-term.