Saudi Leads Growing Markets in Bond Issuance, Surpasses China

Saudi has surpassed China as the key issuer of international debt among growing markets, ending Beijing's 12-year dominance in the same. This year, the Gulf nation is borrowing at an unprecedented rate, with an increase in new bond sales driven by both government and business entities.     The rise is due to the growing support for Crown Prince Mohammed bin Salman's Vision 2030 plan among global debt investors. In the meantime, Chinese borrowers are seeing a lot of demand in local-currency bonds. As a result, they are issuing fewer international issuance, which is one of the lowest in recent years.

Saudi Arabia surpassing China in international debt issuance is a big deal because of the fact that the previous country's economy is much smaller, around 1/sixteenth the size of China's. By 2030, the nation in the Gulf intends to establish itself as a significant global business hub. Investors are confident that the nation will raise funds to fund projects that can reduce its economy's reliance on oil, according to the report's cited data. The country is also proposing to position itself as a connection among Asia and Europe. 

At the same time, bond issuance in other emerging nations are also having a positive year as well. Bond sales by Saudi Arabian entities have increased by 8% so far this year, exceeding $33 billion in total. The government alone makes up the greater part of this sum, which incorporates a $5 billion dollar-denominated sukuk deal last month.