Saudi Credit Remains Strong: Arqaam Capital’s Rizk

The transcript discusses Saudi Arabia's swift response to economic challenges posed by the virus outbreak and fluctuating oil prices. It highlights the fiscal measures taken to stabilize the economy and the impact on credit strength. The Samba NCB merger is analyzed for its implications on the fixed income market, particularly in terms of liquidity and bond structures. Additionally, the transcript covers Saudi Arabia's recent sukuk issuance and anticipates future market activities, noting a shift towards smaller deals.

What was one of the main reasons for Saudi Arabia's fiscal measures during the crisis?

• To expand the tourism sector

• To increase oil production

• To manage the virus outbreak and oil price fluctuations

• To reduce foreign investments

How does the Samba and NCB merger affect the fixed income market?

• It decreases liquidity in the bond market

• It has no impact on the bond market

• It supports Samba's bonds and the broader market

• It leads to a decrease in bond prices

What trend is expected to continue in the region according to the discussion on mergers?

• Reduction in oil production

• Expansion of the tourism sector

• Increase in mergers

• Decrease in foreign investments

What is the expected size of Saudi Arabia's future sukuk issuance?

• The same size as previous issuances

• No future issuances are expected

• Significantly smaller than previous issuances

• Larger than previous issuances

What was the size of the recent sukuk issuance by Saudi Arabia?

• 8.495 billion Saudi rials

• 10 billion Saudi rials

• 5 billion Saudi rials

• 12 billion Saudi rials