DUBAI: Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), is concerned about the different valuation of financial and other assets that has been a feature of markets affected by the coronavirus (COVID-19) pandemic.
Speaking on the opening panel of the Future Investment Initiative (FII) from Riyadh, Al-Rumayyan said that the pandemic has revealed a “division between those with funds waiting on the sidelines and the working class” who had lost jobs during the economic recession.
He added that although PIF will continue to invest in financial assets, this year will see more emphasis on other asset classes, with the Kingdom leading the way in the next round of its economic diversification program.
“We will be investing not just in financial markets but also in the opportunities in real economies. We are looking at conventional economies, as well as future and new economies,” he said.
Al-Rumayyan told FII that he was worried about the high valuations of big technology companies, some of which are facing increased regulatory scrutiny, adding that he was concerned that the disconnect between financial and economic assets will end in a financial downturn.
His cautious note on markets in 2021 was echoed by David Solomon, chairman of US investment bank Goldman Sachs, who said that the ending of liquidity by the financial authorities was a risk.
“A reversal of fiscal and monetary trends might have an impact on this year’s markets,” Solomon said, but he believed that there would be a “very constructive” market in corporate takeovers and mergers.
Ray Dalio, founder of big US investment firm Bridegwater, was also wary about market prospects this year. “I don’t think equities will be as ebullient as last year. The weight of money and credit created to deal with the virus is working through the market.”
Investment experts sound note of caution at FII summit opening
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Investment experts sound note of caution at FII summit opening
- Al-Rumayyan told FII that he was worried about the high valuations of big technology companies, some of which are facing increased regulatory scrutiny
- He said he was concerned the disconnect between financial and economic assets will end in a financial downturn
Kuwait to boost Islamic finance with sukuk regulation
- The move supports sustainable financing and is part of Kuwait’s efforts to diversify its oil-dependent economy
RIYADH: Kuwait is planning to introduce legislation to regulate the issuance of sukuk, or Islamic bonds, both domestically and internationally, as part of efforts to support more sustainable financing for the oil-rich Gulf nation, Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah said on Wednesday.
Speaking at the World Governments Summit in Dubai, Al-Sabah highlighted that Kuwait is exploring a variety of debt instruments to diversify its economy. The country has been implementing fiscal reforms aimed at stimulating growth and controlling its budget deficit amid persistently low oil prices. Hydrocarbons continue to dominate Kuwait’s revenue stream, accounting for nearly 90 percent of government income in 2024.
The Gulf Cooperation Council’s debt capital market is projected to exceed $1.25 trillion by 2026, driven by project funding and government initiatives, representing a 13.6 percent expansion, according to Fitch Ratings.
The region is expected to remain one of the largest sources of US dollar-denominated debt and sukuk issuance among emerging markets. Fitch also noted that cross-sector economic diversification, refinancing needs, and deficit funding are key factors behind this growth.
“We are about to approve the first legislation regulating issuance of government sukuk locally and internationally, in accordance with Islamic laws,” Al-Sabah said.
“This enables us to deal with financial challenges flexibly and responsibly, and to plan for medium and long-term finances.”
Kuwait returned to global debt markets last year with strong results, raising $11.25 billion through a three-part bond sale — the country’s first US dollar issuance since 2017 — drawing substantial investor demand. In March, a new public debt law raised the borrowing ceiling to 30 billion dinars ($98 billion) from 10 billion dinars, enabling longer-term borrowing.
The Gulf’s debt capital markets, which totaled $1.1 trillion at the end of the third quarter of 2025, have evolved from primarily sovereign funding tools into increasingly sophisticated instruments serving governments, banks, and corporates alike. As diversification efforts accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, reinforcing the GCC’s role in emerging-market capital flows.
In 2025, GCC countries accounted for 35 percent of all emerging-market US dollar debt issuance, excluding China, with growth in US dollar sukuk issuance notably outpacing conventional bonds. The region’s total outstanding debt capital markets grew more than 14 percent year on year, reaching $1.1 trillion.
