JEDDAH: The fall in oil revenues has activated the bond market in the recent months across the GCC countries.

For instance, a $ 9 billion bond from Qatar, attracted $ 23 billion in orders last week and Abu Dhabi raised $ 5 billion from the sale of five- and 10-year securities in April in what is described as the Middle East’s largest ever sale.

Reports from Dubai indicate that it is also planning its own issue. Couple with this is the announcement on Wednesday that Oman plans to issue bonds.

Saudi Arabia has already announced its Vision 2030 plan for diversification leading to transformation of its economy.

The Kingdom is considering the sale of as much as $15 billion of bonds this year, including a $10 billion issue that could come soon after the end of Ramadan in July, according to reports.

The country posted a budget deficit of 15 percent of GDP last year and recently had its credit rating reduce from Aa3 to A1 by Moody’s, reflecting a continued decline in economic conditions due to low oil prices.

According to earlier reports, Saudi Arabia has hired HSBC Holdings banker Fahad Al-Saif to start a debt management office on an open-ended secondment from Saudi British Bank to manage its issuance plans.

What has encouraged the Kingdom is Qatar’s record issue last week, and was weighing the sale of at least $ 10 billion in five-, 10- and 30-year bonds in July.

Even as talks were described as being at a preliminary stage, the Financial Times said the Ministry of Finance was lining up a “beauty parade” of lenders on June 6-7 to hear proposals on how to organize the bond.

Banks expected to take part are the lead lenders on the Kingdom’s $10 billion loan in April. They include Bank of Tokyo-Mitsubishi, HSBC and JPMorgan Chase, according to the FT.

Others deemed likely to take part include BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley, with plans to shortlist lead and second-tier arrangers expected as early as mid-June.