The Gulf Bond and Sukuk Association
Q. What is GBSA and what is its purpose?
GBSA is the industry trade association that leads development of the regions fixed income capital market. Its mission is to increase market transparency and liquidity while strengthening the regions voice in the global financial arena. The only organization dedicated to this purpose, GBSA mobilizes market participants and connects the industry with the international official community.
Q. What results does GBSA hope to achieve?
We intend to increase the share of debt capital markets used for finance and to widen the range of entities accessing the capital markets. We also promote harmonization of regulation and market practice and the growth of domestic currency markets.
Q. What are GBSA's activities?
As focal point for the bond and sukuk community, GBSA helps develop bond related legislation and regulation, provides input to regulators, advises governments as issuers, sets market practices and conventions and raises awareness among the public about investing.
Q. Who are the stakeholders of GBSA?
GBSA's member firms are the primary stakeholders. However, in a real sense stakeholders include the entire industry as well as governments, regulators, investors and issuers.
Q. How is GBSA organized and how is policy determined?
Direction is provided by a regional Steering Committee drawn from the Full Members. The Committee ensures GBSA carries out the purposes for which it was created and represents the membership. GBSA has a small staff supported by a team of legal, communications and strategy professionals.
Q. How does GBSA operate?
GBSA carries out its mission through specialized committees and working groups that address high priority national and regional issues identified by the Steering Committee or proposed by members.
Q. How is GBSA financed?
GBSA's activities are supported exclusively by its dues paying members. This structure allows GBSA to remain completely independent so it can focus on its mission.
Q. Do you have any partnerships?
Yes, we have entered into Memoranda of Understanding with EMTA, Trade Association for Emerging Markets and Middle East Investor Relations Society. We will consider other partnerships if they can advance our objectives.
Q. What are the benefits of joining GBSA?
GBSA members are distinguished as the leaders of the movement to develop this vital market. Members also benefit from practical advantages in terms of networking events, opportunities to engage with official bodies, discounts, and opportunities for wider exposure. Click here to see Benefits of Membership
Q. What is the fee to join GBSA?
GBSA's annual fee for a Full Membership is USD 12,000. Associate Memberships are available for some service providers for USD 6,000.Asset managers can join for USD 2,000. Click to see our membership policies
Q: Why does the region need better capital markets?
The region has historically relied on bank lending to support its development, but regional balance sheets are not large enough to support future investment needs. In spite of being a net exporter of capital, the region has come to rely on international lending and capital markets. This has implications in terms of costs and funding risks.
Q. Why are local currency markets important?
Local currency markets ensure that issuers ?? companies, governments, projects?? can obtain financing in their home currency. Development of local currency yield curves assists in pricing of all types of assets in the economy and supports development of an independent monetary policy.
Q. What are the most important missing elements from the bond market now?
The market requires greater transparency, especially from issuers, and liquidity for the issues outstanding. Greater issuance volume and creation of benchmarks by governments will help the market. National regulation needs to accommodate fixed income markets, as they differ in important ways equities. The repo market can work better. Widening the investor base, especially for pensions and insurance is crucial.
Q: What international best practices do you want to promote?
Best practice can mean a lot of things. Practices under the broad category of transparency may include fair pricing and timely issuer disclosure. It can mean fair treatment of clients in terms of price execution and suitability. Best practice for governments includes consistent issuance and providing up to date information to the market.
Q: Who needs to support the development of bond markets?
Financial institutions, governments and regulators all have roles to play at the national and regional levels. GBSA provides the platform for the policy dialogue and supports it with actions.
Q: Which international bond market do you think has the right standards?
We are fortunate to be able to incorporate appropriately the best elements from Europe, Asia, USA as well as emerging national and regional markets.
Q: Does the GBSA participate as advisor to specific transactions?
Since we are devoted solely to developing best practice and establishing the framework for a robust bond/sukuk market, GBSA does not play a role in specific transactions.