The year 2015 marked one of the worst years for oil prices and resulting government revenues; the backbone on which most of the GCC economies ride. For the year now taking shape, three main risks loom for the GCC economies: oil’s continuing slide, the draining of liquidity, and China slowdown. In the debt markets, weaker bidding by Gulf banks is causing corporate spreads to widen gradually. Wider spreads demanded by bond investors implies a significant deterioration of liquidity in the banking sector, which adversely affects the loan market. Execution of a growing pipeline of deals from the Middle East is under jeopardy because of a toxic combination of reduced local liquidity and limited international interest. While there is a demand for sovereign issues, corporate issues have faced withdrawals after the liquidity dried up in the primary markets. […]