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The stable credit ratings of the Gulf economies guarantee the implementation of growth plans and projects next year


Abu Dhabi – Al Hayat


Hours on November 19, 2018
– Last Updated on
November 18, 2018 / 23:15

Global Credit Rating Agencies continued to monitor and monitor the performance of the economies of the countries in the region, given the importance of the latter in stabilizing the global economy and influencing its growth, in addition to the agency's desire to identify the most important success stories and stories . With enormous natural resources that have allowed and continue to record high growth rates.

"The economies in the region have been able to obtain credit ratings from the outset and no downsides or negative ratings have been made, giving them more flexibility to attract foreign investment or access to medium- and long-term international finance at a low cost "Al Mazaya's weekly report said. "On the other hand, exceptional sectoral performance that has managed to achieve positive growth rates, despite the fall in oil revenue over three years, is able to drive classification and maintain it at levels that support incentive, transformation and growth without change or decline.

"Access to debt markets and economies in the region maintain high credit ratings that allow them to enter emerging markets, which means easy access to global debt markets, bond sales, medium and long-term funding," he said. "Including sovereign and non-sovereign debt in JPMorgan Emerging Markets will improve the ability of regional economies to attract billions of dollars in government debt instruments. Saudi Arabia expects to raise up to $ 11 billion as a result of including its bonds. index, which will attract new foreign investment in government debt instruments, and support funding must meet the ambitious ambitious project implementation requirements in the medium and long term ".

"The Saudi economy has always been classified as the region's largest economy, in the face of the power of economies, financial and annual public budgets, and the advanced ranks of the industrialized countries of the Group of 20 (G20) with huge savings and production large internal, "the Al Mazaya report said. He stressed that "the UK's ability to maintain credit ratings both during the current year and in recent years has been ranked by Standard & Poor's and Fitch in a stable outlook, while Moody & The rating was confirmed in the same period and based on these expectations of rating agencies The Saudi economy is growing moderately until the end of 2021, supported by the increase in government investment spending, which means that any increase in investment spending is offset by increasing revenue, while maintaining oil production at current levels. " In addition, the stable ratings of the UK show that economic and financial reform programs will support high credit ratings, and key performance indicators remain strong in high financial budgets, low government debt, and the government's commitment to reform. "

Al Mazaya stressed the importance of Bahrain's financial balance program in the coming years in improving its credit rating and its impact on reducing the cost of obtaining funding from international markets, while three Gulf countries have provided a financial support program up to 10 billion dollars Reform public finances and eliminate Bahrain's budget deficit by 2022 and help reduce borrowing and external markets. "

"The UAE economy is classified as one of the most dynamic and sophisticated economies, capable of adapting to global developments, the most dynamic in the region, is globally competitive and still testing aggressive plans for more economic and financial hurdles. Stay in spite of challenges and obstacles. "" The UAE economy has a high credit rating and a stable outlook from Moody's, based on the strength and diversity of infrastructure, the high income levels of individuals and the high oil and gas, "he said. The increase is expected to be 2.1 percent at the end of the year and 3.9 percent at the end of 2019, with cumulative deficits down to 0.8 percent by the end of this year year.

Moody's classified the sultan's lending situation in a negative outlook based on fiscal deficits of between 5% and 7% of GDP. The Agency expects the debt burden to rise More than 50% of GDP by 2019.

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