The volume of syndicated loans signed in the Middle East has hit a new high, although the market has not reached the level of lending activity seen in the years leading up to 2008.

A total of $46.2bn of syndicated loans has been raised year-to-date, according to the new data from analysis firm Dealogic. It is highest volume of deals signed in the same time period over the past five years.

The total volume marks an increase of more than 50 per cent on the $30.7bn loans raised between January and 7 November in 2012.  

The volume of deals still falls short of the $83.5bn-worth of syndications signed in the same period in 2008.

The syndicated loan market within the Gulf countries fell sharply by the end of 2008, following the collapse of US bank Lehman’s and the subsequent global drying up of liquidity coupled with rising bank funding costs.

Many loans were postponed or restructured in the subsequent years.

The uptick in lending this year suggests banks’ lending appetite is beginning to recover.

Many of the new loans will be used to refinance existing debt.

In Dubai, hotel operator Jumeirah Group raised an unsecured $1.4bn syndicated loan at the end of October. The funds are expected to be used to repay the debt of Dubai Holding, an investment vehicle of Sheikh Mohammed bin Rashid al-Maktoum, the emirate’s ruler.

The latest lending data also shows that US-denominated financing hit $37.6bn year to date, which is more than double the amount borrowed in the same period in 2012.

In contrast, local currency facilities have fallen year-on-year, reaching $7.6bn year to date. This is a 50 per cent decline from the $15.1bn borrowed in 2012.