Saudis to launch new bond market

CAIRO: Saudi Arabia is poised to launch a sukuk and bond market this week, a step analysts said yesterday reflected the OPEC member's push to further develop its debt market at a time when the global meltdown is drying up credit and restricting liquidity.

The new market's launch on June 13 comes as Saudi Arabia, home to the world's largest proven reserves of crude oil and the Arab world's largest economy, forges ahead with a slew of infrastructure projects that officials say will cost around $400 billion over the next five years.

It also marks a broader push within the Gulf Arab region to try to encourage a shift away from bank lending and the development of a new debt market.