Despite impressive economic development, the GCC countries have not yet developed a sophisticated bond market. Though primary issuance has increased, the bond and sukuk markets of the GCC countries still lack important ingredients of a functioning debt capital market like variety of issues, rating culture, transparency, market making and a broad spectrum of institutional market participants. The current high oil revenues put the region’s governments in a comfortable position and they do not need to issue debt in order to financefiscaldeficits.
