Riyadh: GCC governments are expected to see $157.1 billion in fixed income maturities over the next five years (2021-2025) whereas corporate maturities stand at $164.3 billion, Kamco Invest said in a report on Wednesday.

A majority of these maturities are denominated in US-dollar at 61.3%, followed by local currency issuances in Saudi and Qatari riyal at 17.8% and 7.6%, respectively.

Due to the credit rating profile of the GCC governments, a majority of these maturities are in the high investment grade or A-rated instruments. In terms of type of instruments, conventional bonds dominate with $205.7 billion in maturities over the next five years whereas Sukuk maturities are expected to be at $115.7 billion.

While bond maturities show a declining trend over the next five years, Sukuk maturities are expected to increase starting from 2022, the report said.

In terms of country split, the UAE has the biggest share of upcoming maturities until 2025 at $99.2 billion, closely followed by Saudi Arabia and Qatari issuers at $97.1 billion and $72.4 billion, respectively.

Loan maturities in the GCC region are also almost at the same level over the next five years as bonds and Sukuk at $299.3 billion, according to the report. 

In terms of sector maturities, banks and other financial services sector have $98.0 billion in maturities in the next five years, accounting for around 60% of the total corporate maturities and 30.5% of the total maturities in the GCC until 2025.

The energy sector was next with maturities of $15.3 billion or 9.3% of GCC corporate maturities until 2025, followed by utilities and airlines at $11.4 billion and $11.2 billion, respectively. Banks in the UAE have the biggest maturities over the next five years at $45.4 billion followed by Qatar at $26.4 billion.

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