trending Market Intelligence /marketintelligence/en/news-insights/trending/5KTzEWmXGClJosK6r_T_AQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's: Lower oil prices to weaken Gulf nations' fiscal metrics

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments

Paypal Well-Positioned To Gain Share In COVID-Related Digital Payments Shift

Moody's: Lower oil prices to weaken Gulf nations' fiscal metrics

An expected decline in oil prices and output will weaken the fiscal and external positions of Saudi Arabia and other member states of the Gulf Cooperation Council, resulting in faster-than-expected debt accumulation, Moody's said in a report.

The rating agency projected oil prices to average $62 per barrel in 2019 and 2020, down from an average of $71 per barrel in 2018.

"Moderate oil prices will weigh on GCC governments' fiscal metrics in 2019, particularly since most have adopted expansionary budgets, aimed at supporting growth in non-hydrocarbon output and accelerating job creation," wrote the report's authors, led by Moody's senior analyst Alexander Perjessy.

Fiscal deficits are expected to widen by 6.9% of GDP in Kuwait, 3.7% in Oman and 1.0% in Saudi Arabia, according to Moody's. Qatar and the United Arab Emirates, which were previously expected to post budget surpluses, are now forecast to record small fiscal deficits.

"The situation would be more stark were oil prices to fall further from our baseline scenario," the Moody's report said.

In addition to lower oil prices, oil production cuts by GCC nations will also put pressure on their external positions, Moody's said. For 2019, the rating agency lowered its current account surplus forecasts for the UAE, Kuwait, Qatar and Saudi Arabia.

Only Oman and Bahrain are expected to post current account deficits this year at 9.4% of GDP and approximately 5% of GDP, respectively, up from Moody's previous forecasts.