Zaid Al-Sager shares key insights at Bonds, Loans & Sukuk Mideast conference in Dubai

Kuwait Times

21-05-2025

Event brings together top regional and international finance leaders
KUWAIT: The National Bank of Kuwait (NBK) was a silver sponsor and participated in a senior panel discussion at the Bonds, Loans & Sukuk Middle East Conference 2025, held on May 20-21 at the Madinat Jumeirah Conference Centre in Dubai. The event brought together senior finance leaders from both regional and international financial institutions to examine the shifting landscape of the syndicated loan markets in the Middle East, with particular attention to pricing developments, sustainability considerations, and heightened competitive dynamics.
Zaid Al-Sager, Deputy CEO of the International Banking Group at NBK, joined an expert panel of global financial leaders to examine the critical factors shaping syndicated lending activity in 2025. The panel began with a market pulse survey to gauge expectations for the rest of the year. Sentiment was largely cautious due to the current macroeconomic headwinds and geopolitical uncertainty, both of which have continued to weigh in on deal volumes. The conversation, however, quickly transitioned toward addressing practical solutions, including strategic positioning and adaptability to the current environment.
Panelists observed that over the past year, the syndicated loan markets have contended with higher liquidity among financial institutions that has resulted in margin compression, which has led regional lenders with a footprint in Europe and the US to search for higher yields in those markets that supports bolstering their P&Ls. Meanwhile, borrowers in the region, while facing reducing funding costs over the last few quarters, also maintain higher liquidity as a result of de-leveraging post-COVID. As such, much of the syndicated borrowing during the last 12 months has been related to GRE-related entities requiring support on large-scale infrastructure projects in the region.
Another key point of discussion was the growing complexity of competition between regional and international lenders. Despite the continued expansion of global liquidity, particularly from Asia, regional financial institutions retain a competitive advantage in the regiongiven their deep regulatory insight and strong relationships with clients in the region.
The panel also explored the integration of ESG principles into syndicated loan structures. Although frameworks remain in development, there is a growing convergence between lenders and borrowers around sustainability-linked targets. These considerations are progressively influencing underwriting standards, as banks align their portfolios with broader responsible finance goals.
Currency diversification also emerged as a central topic. Amid ongoing US dollar volatility, borrowers are increasingly exploring alternative funding currencies to better manage exposure and optimize pricing. The conversation further examined the growing role of Islamic finance in loan syndications, supported by structural innovation that is broadening market participation.
Looking forward, participants identified several key forces expected to shape the lending environment in 2025, including declining oil prices, the expanding role of private credit, and evolving structures in deal-making. The Bonds, Loans & Sukuk Middle East Conference remains a cornerstone event in the region's financial calendar, providing a platform for industry leaders to engage on capital market developments. Since its inception, the conference has facilitated meaningful dialogue on syndicated finance, ESG integration, and regional competitiveness – particularly in light of the GCC's economic diversification agenda and energy transition goals.
NBK's participation reaffirmed its role as a regional leader in syndicated lending and highlighted its commitment to providing tailored financing solutions in an evolving market landscape. In 2024, NBK successfully issued its inaugural $500 million green bond, which was oversubscribed more than three times, signaling strong investor confidence in the bank's sustainable finance framework. Furthermore, NBK was recognized by Global Finance Magazine as the 'Best Bank for ESG-Related Loans in the Middle East 2024,' reflecting its ongoing integration of sustainability principles into its lending practices.