Gulf capital hits $105bn in first half

Gulf firms raised $105 billion in capital during the first six months of the year, through IPOs, M&As, bonds, project finance and corporate loans, a report says.

Gulf News reports findings from information service provider Thomson which says “Fast-growing companies need capital and are turning towards the bond and loans markets for cash. Mergers and acquisitions and initial public offerings have also fuelled the leap.”

According to the report the figure represents a 25% increase compared to the same period last year. It says Gulf companies used $40.1 billion leverage on mergers and acquisitions activities in the first six months of the year, more than the total for last year.

The $4.47 billion raised through IPOs also beats figures for the whole of last year, indicating that equity markets in the region are stabilising, and that investors are gaining confidence. Saudi Kayan and Jebel Omar issues accounted for up to half the total.

Bond and sukuk markets totalled $12.1 billion, up from $10.2 billion in the first half of 2006.

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