Gulf countries are in great need of debt, accelerating their exit from the Strait of Hormuz

To date this year, the Gulf countries have issued $112 billion in bonds, the highest ever recorded for the same period. The size of bond issuance in these countries has more than tripled over the same period since 2022. Currently, Saudi Arabia, Kuwait, the United Arab Emirates and Qatar are seeking financing to build infrastructure around the Strait of Hormuz. This includes the construction of new ports in the Red Sea and the Gulf of Oman, the rehabilitation of old oil and gas pipelines and the improvement of road networks in those countries. Kuwait alone raised $6 billion last week and attracted up to $14.8 billion in investor subscription orders, more than double the amount issued, indicating that the demand for Gulf bonds remains strong. Kim Xian