What are the sovereign tires and why accept the governments of the Middle East?

In a time when governments have to finance their ambitious projects and reduce the burdens of their budgets, the attention of the Middle East is more than ever before to the sovereign effects market. From the Gulf to North Africa, countries offer guilt peppers to international investors, in a scene that appears complicated at first glance, but in fact provides opportunities and challenges that make understanding. What are the sovereign effects? And why does it become a preferred instrument to finance the budget deficit in the region? Are these versions a long -term solution or a deferred load? 1- What are the sovereign tires and their role? The sovereign effects are guilt papers issued by national governments with the aim of raising funds to finance their operations or to pay antique debt, or to pay interest on existing debt, or to meet any other needs of the government’s expenses. These effects can be denied in a foreign exchange or in the local state currency. Sovereign effects are an important source of government financing in addition to tax revenue, and are generally considered a low -risk investment compared to corporate effects, but it is not completely free of risk. The associated risks are mainly dependent on the credit wall of the executed government. Credit rating agencies evaluate sovereign effects based on various factors such as economic stability, political stability and debt levels. The upper frameworks tend to offer fewer benefits, while low frameworks usually offer high returns to compensate for the increasing risks. 2- Why do the governments of the Middle East accept sovereign effects and effects? The Middle East region, especially the wave states, sees a greater activity in the issues of bonds and sukuk, with the aim of financeing the budget deficit and maintaining the sustainability of spending and to support economic diversification plans away from the energy sector. Sukuk -publications usually attract a stronger demand compared to traditional ties, especially with the increasing requirements for management, social, social and institutional standards and the deepening of regional liquidity. The International Monetary Fund is expected in the report of the global economy prospects for the month of April. The growth of the Middle East and North Africa economics is 2.6% and 3.4% in the next year, which respectively, a decrease of 0.9 percentage points and 0.5 percentage points for its estimates issued at the beginning of this year. 3- What is the relationship between low oil prices and the release of effects in the Middle East? Oil prices are one of the basic engines of public finances in the Middle East, especially in the Gulf cooperation council countries, which mainly depend on oil income to finance their budgets. When oil prices drop, a number of these countries have a financial deficit due to the decline in government revenue, which leads them to search for alternative financing sources to fill the deficit, and therefore it has used international bonds. International Cash expects average oil prices to amount to about $ 66.9 a barrel this year, which is less than $ 6 for previous estimates. Brent Ru prices have also dropped by about 15% since the beginning of the year to record about $ 63 a barrel due to US commercial conflicts, and the ‘OPEC+’ announcement of faster productivity than expected. At the end of last year, the “Fitch” agency suggested that the Arab Golf State issue themselves more debt in 2025 and 2026, amid estimates that oil prices remain at low levels in the two years. The Middle East and North Africa supply about 35% of global oil exports and 14% of gas exports, according to the estimates of the fund issued in 2024. The oil revenue is an essential tributary of the government budgets in the region in the countries that roughly. 4- What are the most prominent countries in the region that offered international bonds? In the first week of this year, Saudi Arabia raised $ 12 billion from the first international mortgage offering, after the annual loan plan 2025 was adopted with the financing needs expected in the $ 37 billion financial year. Saudi Arabia has estimated the budget deficit for the current year at 101 billion Riyale, parallel to the estimate of the increase in debt balance by about 100 billion Riyal, to reach 1.3 trillion Riyale by the end of 2025. The businesses and sovereign authorities in the Emirates – which is one of the highest markets – issued a $ 38.4 billion debt tools during 2024. “Bloomberg” in the middle of the December. The issuance of debt instruments increased by 54% year -on -year, which is the highest since the expansion of the financing request during the Cofide 19 period in 2020, according to the data collected by “Bloomberg”. Last January, Egypt raised two billion dollars from the presentation of international bonds for the first time in four years of selling debt tools placed on two SIM cards for 5 and 8 years, to fill a financing gap of approximately $ 10 billion during the current financial year. Bahrain is also preparing to enter into the international bond markets through an agreement that could raise at least $ 1.5 billion at the end of April, with the effort to improve its financial conditions in light of the fall in oil prices. The “International Cash” estimates indicate that the price of oil needed to achieve a financial tie in the Bahrain budget is about $ 125 a barrel. Bahrain received a $ 10 billion financial support package from Saudi Arabia, the UAE and Kuwait in 2018 to improve its financial conditions after a long period of low oil prices. 5- What is the future of religious publications in the Gulf region? Often, the issues of debt in the Gulf cooperation council countries will not be influenced by fluctuations in the emerging market currencies against the dollar, thanks to their credit power, according to director of the management of monetary and capital markets at the International Monetary Fund, Tobias Adrian, in an interview with “Al Sharq” during April. The size of the wave debt market exceeded a dollar obstacle by the end of January last year, an annual year -on -year increase, according to “Fitch”. The agency, in a report released during February, expected the banks of the region to issue debt with more than $ 30 billion in 2025, with large companies reaching up sukuk and bonds to diversify financing. Recently, the International Monetary Fund changed its forecast for oil economies in the region to 2.3%, or 1.7 percent of its previous estimates issued in October.