MENA Daily Fixed Income Report – 22 January 2024
Kuwait Financial Centre “Markaz”
News Updates GCC Sovereign Yields
Price ∆ Price ∆ Sovereign Ratings
Kuwait’s Total Foreign Debt is Down by KD 2 bn – Kuwait’s total Sovereigns Maturity Yield %
(YTD %)
Sovereigns Maturity Yield %
(YTD %) Moody’s S&P Fitch
external debt has decreased by approximately 2 billion KD or 10.0% in Abu Dhabi 2027 4.49 -0.78 KSA 2027 4.92 -1.17 Kuwait A1 A+ AA-
Abu Dhabi 2031 4.48 -1.96 KSA 2032 5.02 -3.35
six months, reaching 18.4 billion KD by the end of the third quarter of KSA A1 Au A+
Abu Dhabi 2050 5.30 -4.83 KSA 2050 5.84 -6.07
Bahrain 2028 6.20 -1.49 Oman 2027 5.24 -0.51 UAE Aa2 NR AA-
2023. This marks a decline from 20.4 billion KD recorded at the end of
Bahrain 2032 6.95 -2.07 Oman 2032 5.64 -1.76 Abu Dhabi Aa2 AA AA
the first quarter of 2023. The Central Bank’s financial statements Bahrain 2051 7.91 -2.75 Oman 2051 6.62 -3.16
Qatar Aa3 AA AA-
illustrate a yearly reduction in external debt by about 1.1 billion KD, Dubai 2029 4.65 -0.88 Qatar 2026 4.64 -0.53
Dubai 2050 5.92 -3.31 Qatar 2030 4.48 -1.64 Bahrain B2 B+ B+
down from 19.5 billion dinars in the third quarter of 2022. Kuwait 2027 4.39 -0.45 Qatar 2050 5.30 -5.79 Oman Ba1 BB+ BB+
Furthermore, Kuwait’s total external debt increased by 342 million KD, Bonds and Sukuk Indices Egypt Caa1 B- B-
or 1.8%, by the end of the second quarter of 2023 compared to the Index Name Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Lebanon C SD RDu
Bloomberg GCC FI Index 5.46 6.78 -0.15 -1.96 Jordan B1 B+ BB-
same period in 2022, reaching a total of 19.334 billion KD. (Source: S&P MENA Bond and Sukuk Index 5.25 7.00 -0.16 -2.16
Bloomberg Emerging Markets USD Index 7.28 6.27 -0.05 -1.45 Turkey B3 Bu B
Arab Times)
Bloomberg Global Aggregate Index 3.72 6.68 0.11 -2.42 Tunisia Caa2 NR CCC-
Kuwait’s Annual CPI Rises 3.37% in December 2023 – Kuwait’s annual Morocco Ba1 BB+ BB+u
Interbank Rates (%)
consumer price index registered a 3.4% increase in December 2023, 3 Months 6 Months 12 Months US Aaa AA+u AAAu
compared to the same period the previous year, driven by high prices 22/01/2024 31/12/2023 22/01/2024 31/12/2023 22/01/2024 31/12/2023 UK Aa3 AAu AA-u
KIBOR 4.31 4.00 4.50 4.25 4.75 4.56
in several major sectors. The country’s monthly CPI also saw a rise of China A1 A+ A+u
SAIBOR 6.21 5.34 6.01 5.60 5.93 5.87
0.3% in December compared to the previous month, according to a BHIBOR 6.52 6.14 6.45 6.27 6.42 6.55
QATAR 6.00 5.28 6.10 5.42 6.25 5.58 USD 22-Jan 31-Dec
recent report by the nation’s Central Statistics Bureau. The annual AEIBOR 5.06 4.31 5.03 4.94 5.13 5.04 5Yr CDS 2024 2023
increase was led by a hike of 4.7% in the food and beverage group EURIBOR 3.96 2.13 3.91 2.69 3.66 3.29 Kuwait 44.95 35.96
LIBOR 5.58 4.77 5.59 5.14 6.04 5.48 KSA 60.58 50.21
prices, along with a 6.7% increase in the cost of clothing and footwear. Abu Dhabi 45.29 39.60
USD Swap Rates Currencies Commodities
(Source: Arab News) 1D ∆ YTD ∆ 1D ∆ YTD ∆ YTD ∆ Dubai 69.55 60.36
Yield % USD USD Qatar 51.49 43.52
(bps) (%) (bps) (%) (%)
Moody's Revises Egypt's Outlook to 'Negative' on Weak Debt 1-Year 4.85 0.22 1.9 KWD 0.30728 0.5630 0.56 Crude Oil 78.36 1.49 Bahrain 211.28 198.10
Affordability – Global ratings agency Moody's revised its outlook on 2-Year 4.24 0.24 4.2 SAR 3.7507 0.0000 -0.02 Gold 2,043.50 -2.31 Oman 120.85 112.12
5-Year 3.79 -0.05 7.3 EUR 1.0902 0.0060 -1.25 Silver 22.425 -6.21 Iraq 372.66 411.62
Egypt to "negative" from "stable" on Thursday, citing increasing risks 7-Year 3.75 -0.13 7.7 GBP 1.2719 0.0150 -0.13 Copper 377.30 -3.01 Egypt NA NA
that the country's credit profile will continue to weaken amid difficult 10-Year 3.75 -0.17 7.8 JPY 148.03 0.0070 -4.72 Nat. Gas 2.333 -7.08 Morocco 105.26 109.36
30-Year 3.62 -0.22 9.0 CNH 7.2070 -0.0060 -1.14 Aluminum 2,141.25 -9.61 Turkey 315.32 279.01
macroeconomic and exchange rate rebalancing. Continued access to US 41.34 45.19
US Treasuries UK Gilts German Bunds
official financial support from the International Monetary Fund (IMF) Yield % 1D ∆ (%) Yield % 1D ∆ (%) Yield % 1D ∆ (%) UK 31.75 33.74
2-Year 4.40 -0.03 4.30 -0.03 3.38 -0.02 China 64.04 59.80
was expected to increase Egypt's debt affordability, but "policy actions
5-Year 4.05 0.02 3.85 -0.09 2.31 -0.13 Japan 20.54 22.74
and external support may prove insufficient to prevent a debt 10-Year 4.11 0.09 3.93 0.02 2.26 0.02 Germany 12.89 15.61
30-Year 4.32 0.26 4.56 0.47 2.49 0.57 France 21.33 22.94
restructuring" given its weak debt metrics. (Source: Reuters)
This report has been prepared and issued by Kuwait Financial Centre K.P.S.C. (Markaz), which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is
subject to copyrights. Sale of any copies of this report is strictly prohibited. This report can not be published.
A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.
