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Bloomberg
Gulf Arab energy companies retreated from debt markets in the first half of 2018 after a banner year for borrowing as higher oil prices curbed financing needs for existing operations and new projects.
Oil and gas producers, pipeline operators and refiners in countries including Kuwait, the United Arab Emirates and Saudi Arabia borrowed $6 billion through loans and bonds in the first half of 2018, the slowest start in four years, according to data compiled by Bloomberg.
By comparison, US energy companies, driven by resurgent shale production, issued a record $74.3 billion in debt so far in 2018.
The diverging debt appetites between the Arab exporters and US suppliers shows that Gulf Cooperation Council (GCC) producers are bringing in more cash to finance operations and expansion after crude prices rose 17 percent this year. It’s also a consequence of the sudden turn in appetite for emerging-market risk this year, raising borrowing costs for
issuers across the board.