IslamicFinance.de

Financing needs for the GCC countries are estimated at USD 151.3 billion this year, according to M.R. Raghu, Head of Research at Markaz and Managing Director of Marmore MENA Intelligence. These funding requirements are expected to come from reserves (52%), USD 57.7 bn from domestic and international bond issuances (38%) and the rest through loans (10%). Overall, GCC governments are expected to raise between USD 285-390 billion cumulatively through 2020 through local and international bonds. Raghu said low oil prices have altered the fiscal landscape of GCC countries as the prized fiscal surplus registered in erstwhile years has flipped into large scale deficits to the tune of USD 160 bn in 2015 and 2016 respectively.