UAE sees syndicated loan volume double in 2013

08 January 2014

Deal activity falls in Qatar for third year in a row

The value of syndicated loans signed in UAE in 2013 reached $32.2bn, more than doubling on the $15.8bn raised in 2012.

It is the highest full year volume recorded since 2008 when $42.7bn deals were concluded, according to new data from Dealogic.

Across the Middle East, the syndicated loan market reached a new high with $63.7bn loans signed. This is the highest value of transactions signed since 2008 when $85.6bn loans concluded.

Combined with Africa, the region’s syndicated loan volume topped $96bn in 2013.  

In contrast, the value of syndicated loans in Qatar decreased for the third consecutive year with just $2.7bn borrowed, a fall of 29 per cent on the $3.8bn signed in 2012.

Despite the widespread promotion of Islamic finance within the GCC last year, the proportion of Islamic finance facilities in the wider syndicated loan market fell in 2013 by 35 per cent, declining from $15.4bn of all loans signed to $10.8bn.

At the beginning of 2013, Dubai launched a campaign to make the emirate the “capital of the Islamic economy”, which means not just acting as a finance hub, but also encouraging investment in sharia-compliant food, pharmaceuticals, travel and clothing.

US-headquartered Citi was the most active bank and bookrunner in the syndicated loan market, with an 11.3 per cent market share.

The UK’s HSBC and Saudi Arabia’s Samba Capital both account for roughly 8-9 per cent of the market.

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