{"id":55144,"date":"2020-09-23T09:37:02","date_gmt":"2020-09-23T14:37:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55144"},"modified":"2020-09-23T09:37:02","modified_gmt":"2020-09-23T14:37:02","slug":"the-debt-crisis-is-mounting-for-oil-economies","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55144","title":{"rendered":"The Debt Crisis Is Mounting For Oil Economies"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/The-Debt-Crisis-Is-Mounting-For-Oil-Economies.html\">The Debt Crisis Is Mounting For Oil Economies<\/a><\/h3>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2020-09-21_jcbzqzpagq.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2020-09-21_jcbzqzpagq.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2020-09-21_jcbzqzpagq.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>Dubai. Abu Dhabi. Bahrain. And, of course, Saudi Arabia. The two emirates this year issued debt for the first time in years. So did Bahrain. Saudi Arabia stepped up its debt issuance. The moves are typical for the oil-dependent Gulf economies. When the going is good, the money flows. When oil prices crash, they issue debt to keep going until prices recover. This time, there is a problem. Nobody knows if prices will recover.<\/p>\n<p>In August, Abu Dhabi announced plans for what Bloomberg<a href=\"https:\/\/www.aljazeera.com\/ajimpact\/abu-dhabi-returns-debt-market-longest-gulf-bond-200825141712021.html\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0called<\/a>\u00a0the longest bond ever issued by a Gulf government. The 50-year debt stood at<a href=\"https:\/\/gulfnews.com\/business\/banking\/abu-dhabi-issues-5b-in-multi-tranche-50-year-bond-1.73590626#:~:text=Abu%20Dhabi%3A%20The%20emirate%20of,priced%20at%20historic%20low%20yields.\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0$5 billion<\/a>, and its issuance was completed in early September. The bond was oversubscribed as proof of the wealthiest Emirate\u2019s continued good reputation among investors.<\/p>\n<p>Dubai, another emirate,<a href=\"https:\/\/www.ft.com\/content\/872df784-e111-4bc7-9eab-0af18f2336c0\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0said<\/a>\u00a0it was preparing to issue debt for the first time since 2014 at the end of August. Despite the fact the UAE economy is relatively diversified when compared to other Gulf oil producers, it too suffered a hard blow from the latest oil price crash and needed to replenish its reserves urgently. Dubai<a href=\"https:\/\/uk.reuters.com\/article\/emirates-bonds\/returning-to-public-debt-markets-after-six-years-dubai-gets-2-billion-idUSKBN25T2TQ\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0raised<\/a>\u00a0$2 billion on international bond markets last week. Like Abu Dhabi\u2019s bond, Dubai\u2019s was oversubscribed.<\/p>\n<p>Oversubscription is certainly a good sign. It means investors trust that the issuer of the debt is solid. But can the Gulf economies remain solid by issuing bond after bond with oil prices set to recover a lot more slowly than previously expected? Or could this crisis be the final straw that tips them into actual reforms?<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Debt Crisis Is Mounting For Oil Economies Dubai. Abu Dhabi. Bahrain. And, of course, Saudi Arabia. The two emirates this year issued debt for the first time in years. So did Bahrain. Saudi Arabia stepped up its debt issuance. The moves are typical for the oil-dependent Gulf economies. When the going is good, the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[973,2225,4106,8399,13719,589,592,5332,701],"class_list":["post-55144","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-abu-dhabi","tag-bahrain","tag-debt-crisis","tag-dubai","tag-irina-slav","tag-oil-demand","tag-oil-price","tag-oilprice-com","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55144"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55144\/revisions"}],"predecessor-version":[{"id":55145,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55144\/revisions\/55145"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}