Tony Hchaime

As investors’ expectations of USD interest rate cuts are reset post FOMC, the MENA region witnessed US$27 billion of Bond & Sukuk issuances this month - the highest volume ever recorded for January - with a potential for 2025 to surpass a record 2024 in debt issuance activity. Thank you Naser El Tibi and AlArabiya channel for the opportunity to discuss regional debt financing markets and the USD interest rate outlook. HSBC Corporate and Institutional Banking #DebtCapitalMarkets #HSBC https://lnkd.in/dZv_xAyJ

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Oman Investment Authority, Bahrain Mumtalakat Holding Company ("Mumtalakat"​), Kuwait Investment Authority, Qatar Investment Authority, Public Investment Fund (PIF), Abu Dhabi Investment Authority (ADIA), and Mubadala collectively manage around $4 trillion in assets. ◼️ These sovereign wealth funds (SWFs) were set up to preserve wealth for future generations and diversify away from oil, mainly by investing abroad. But strategies have shifted. Today, they are placing greater focus on domestic economies, while also demanding technology transfer and knowledge spillovers in their foreign investment terms to boost local development. ◼️ A recent IMF working paper highlights the impact of this shift: a 1% increase in SWFs’ domestic investment (as a share of GDP) is linked to 0.4% growth in non-oil GDP over four years. Even more striking, 1% of foreign investments (FDI) leads to over 1.2% growth in non-oil GDP over the same horizon. This explains why, despite the trillions managed locally, GCC countries continue to aggressively attract FDI. ◼️ Traditionally, FDI into the GCC flowed to hydrocarbons. But in recent years, it has broadened into finance, logistics, hospitality, IT, real estate, and manufacturing, and these flows have continued despite global headwinds and geopolitical tensions. 📌 Beyond growth, FDI is also critical for jobs, in #Oman for example, 1 in 10 jobs is powered by FDI. ◼️ The paper further shows that GCC SWFs remain the main channel for outward investments, accounting for about 80% of the region’s outward flows. But are now emerging as dominant domestic investors, making up roughly 50% of local investment. ◼️ And add to that the fact that intra-GCC investments now make up about 25% of all FDI flows, a sign that the region is strengthening its own internal economic links. Table: Summary of the data used (2000-2023), deal values are in billion USD

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Abu Dhabi sovereign wealth fund ADQ has teamed up with Orion Resource Partners to form a joint venture that will invest in metals and mining, ADQ said on Thursday, as the wealth fund expands its critical minerals portfolio. Under the 50-50 JV, which will be based in the UAE’s capital, ADQ and global investment firm Orion will initially invest $1.2 billion over four years in mining companies in emerging markets in Africa, Asia and Latin America.

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