Moody’s sees upbeat forecasts for UAE banks

2018-12-06 17:37:02 GMT (Economies.com)
Moody’s sees upbeat forecasts for UAE banks
 

Rating agency Moody's Investors Service said there are several factors that may positively impact the UAE banks and other GCC banks in the coming period, including the imminent “Expo 2020 Dubai”.

The ratings agency assigned Arabian Gulf banks a stable outlook on the back of improving operating conditions, strong capital and weakening but still solid lending.

Banks in UAE, Kuwait, and Saudi Arabia will remain resilient but fiscal pressures will weigh on banks in Oman and Bahrain, where oil prices will remain below the levels needed to balance state budgets, Moody's said in a report.

"Current oil prices will support increased government spending, and stimulus packages such as UAE's Expo 2020, the Saudi National Transformation Plan...will underpin banks' stable financial performance," said Nitish Bhojnagarwala, a Moody's vice president and senior credit officer.

Moody’s also said GCC banks' credit growth will recover as government spending stimulates the economies and spurs private-sector growth.

 
 
 
  Symbol Last Change Chg.%
1.1301
-0.0096
0.8406%
1.2573
-0.0130
1.0253%
14.620
-0.001
0.003%
51.143
-1.102
2.109%
60.16
-1.26
2.05%
1239.940
-8.100
0.649%
 
 
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