The postponement of Qatar's first sovereign bond issue, which was announced on 29 June, is a result of market conditions and no cause for concern, according to London-based bankers.

The planned issue of bonds worth at least $500 million has been delayed due to unfavourable conditions in emerging markets (see Qatar). 'This is not a disaster,' says a London-based banker following the deal. 'Similar deals in other emerging markets have also been unable to tempt investors.' Emerging markets have been very volatile over the last few months, he says. 'Investors are not in a buying mood, and no issuance of any significance will get done now.'

While Middle East markets have proved more stable than other emerging markets in recent months due to relatively low levels of foreign investment and the fact that they are relatively unglobalised, the uncertainty surrounding emerging market bonds has reached a level at which even the Middle East is suffering, bankers say. 'Emerging market investors do not differentiate between good and bad deals when they become forced sellers,' says one.

Analysts expect that other bond issues planned in the region will also be delayed until there is a significant improvement in market conditions, which they say is unlikely to happen until after the summer, and after Russia reaches agreement with the IMF for a new funding programme.

Forthcoming bonds include a sovereign issue by Lebanon, which has announced plans to raise $500 million by September and a further $500 million before the end of the year. Oman LNG, United Power Company, also of Oman, and Egypt's Commercial International Bank are also understood to be planning debt issues.

Meanwhile, Bahrain Middle East Bank is understood to have cancelled plans to issue a five-year bond and will instead opt for a syndicated loan facility.