Search SaudiArabiaPR.com

Home >> Banking & Investments

Credit FAQ Discusses Potential Implications Of Qatar Boycott For Gulf Cooperation Council Sovereigns

Wednesday, August 9, 2017/ Editor -  

Share

Home >> Banking & Investments

LONDON (S&P Global Ratings) Aug. 9, 2017:  In a Credit FAQ titled 'Potential Implications Of Qatar Boycott For Gulf Cooperation Council Sovereigns,' published today, S&P Global Ratings responds to questions that have surfaced in recent discussions with issuers and investors about the implications of the Qatar boycott by a group of states for the Gulf Cooperation Council (GCC) sovereigns.

S&P Global Ratings believes that the impact of a group of states cutting diplomatic ties, as well as trade and transport links, with Qatar on June 5, 2017, may not be confined to within Qatar's borders. We expect that political tensions within the GCC will persist over the next few years, and believe that the boycott of Qatar has illustrated deeper fissures within the group than were previously evident.

For the most part, we have viewed the GCC as a stable political alliance in the Arab region. The GCC broadly maintained this stability through the global
financial crisis and the Arab Spring. Numerous regional economic initiatives, suggestive of a cohesive vision, have been launched, such as financial support packages for Oman and Bahrain, and the planned introduction of VAT across the region in 2018. In our view, these initiatives indicated a desire to ensure the political and financial stability of the GCC and its individual member states. While we do not think that this desire has changed significantly, in our view, the current tensions weaken the cohesiveness of the GCC and complicate policy predictability.

The boycott of Qatar comes at a time when regional sovereign financing requirements are at a historic high in the GCC. The boycott creates the potential for financial flows to be disrupted, and for the reversal of prior investment decisions and financing lines, including those to financial institutions. However, absent a material further escalation in the boycott, we do not expect these risks to materialize to a significant extent.

The group of states boycotting Qatar includes Saudi Arabia, United Arab Emirates, Bahrain, Egypt, Libya, and Yemen.

Only a rating committee may determine a rating action and this report does not constitute a rating action.


Previous in Banking & Investments

Next in Banking & Investments


Home >> Banking & Investments Section

Latest Press Release

Sharjah continues to become more affordable, with rents and sales prices falling ...

Makkah Millennium Hotel & Towers is all set to welcome 15,000 Haj pilgrims this ...

Introducing Salvatore Ferragamo's Men's Sun and Optical Capsule

6-Day SCTDA Tour Guide Training Program Conducted by SUC

One Day Course in Dealing with and Managing Difficult Stakeholders

Huawei's New Range of Artificial Intelligent Smartphones Set to Change Your Self ...

Affordable housing driving Riyadh's real estate market, says JLL

Bank Al Bilad invests in leaders through Ashridge flagship program

Oh, Sweetie Lipcolour!

Marchon Eyewear and G-III Apparel Group Sign Exclusive Global Licensing Agreemen ...

Jaeger-Lecoultre Main Sponsor of the 75th International Film Festival of La Bie ...

Cerruti 1881 Infinite Love

Express Your Signature Style

Al Basel Group's new jewelry business in KSA to boost localization efforts

The Memovox Adventure

‘Elaf Grand Al Majeedi' the newest addition to luxury hotels in Al Madina

Makkah poised to welcome investment opportunities to boost economic growth

Airbus unveils winners of its ‘Entaliq in KSA' initiative

Sacoor Brothers launches FIRST ever Fragrance “GENTLEMAN”

Entertainment sector continues to remain popular in Jeddah in Q2, says JLL