Diaspora Bonds in the MENA Region: A Financial Insight

A diaspora bond is a type of financial vehicle issued by a country to tap into the financial resources of its citizens living abroad, known as a diaspora. Patriotism is the principal motivation for the diaspora bond issue. These bonds are intended to encourage members of the diaspora to invest in their countries’ development projects, infrastructure, or other economic initiatives. This helps the country raise capital and develop while fostering a connection between the diaspora and their country of origin. Today, it is possible for immigrants to remain connected with their native countries and give back to their motherland. The emigration of skilled people is a loss for a country, but, on the other hand, skilled migration is an opportunity to receive remittances, trade, investment projects and new knowledge for a country. Some countries in the MENA region are pursuing government policies to develop links with their overseas citizens and encourage them to return or to use their knowledge and financial support for the development of their country.