Gulf issuers, led by Saudi Arabia's $925 billion Public Investment Fund (PIF), are advancing plans to raise as much as $6.5 billion through bond sales, despite recent market volatility stemming from US trade policy uncertainty. PIF is targeting between $1.5 billion and $2 billion through a sukuk issuance in the coming weeks, after raising $11 billion earlier this year. Abu Dhabi Ports is also looking to raise $2 billion, while UAE-based renewable energy firm Masdar is preparing a $1 billion green bond offering, according to sources. Masdar confirmed its intention to remain an active green bond issuer, subject to market conditions. These moves come as Gulf governments face budgetary pressure from lower oil prices, prompting state-backed entities to increase overseas borrowing to sustain major investment programmes and economic diversification efforts. In the banking sector, Saudi Arabia's Banque Saudi Fransi is preparing to issue an above-benchmark bond this week, while Saudi National Bank raised $750 million in a Taiwan dollar-bond in March. The activity follows a successful $500 million sukuk issuance by Dubai's Mashreq Bank last week, reflecting continued investor appetite. Fitch projects Saudi banks will see credit growth of 12 to 14 per cent in 2025, with lending growth outpacing deposits and pushing the sector's deposit gap to an estimated $79.96 billion this year. Attribution: Reuters Subediting: M. S. Salama
