Arab nations face rating dip due to regional instabilities

Al-Subaih stressed that “Daman”, based on its awareness of the paramount importance of sovereign rating and risk indicators in showing the extent of interest of multinational companies, and financial, investment and trade institutions in Arab countries, continues to monitor them around the world. 30 indicators of sovereign ratings and assessment of political, economic, financial and operational risks issued by 15 specialized international agencies and comparing them to the previous year. The main conclusions are as follows:
■ Stability of sovereign ratings in 4 Arab countries, and improvement in Qatar, the Emirates, Saudi Arabia, and Oman, compared to the decline in Morocco’s rating,

Al-Subaih pointed out that despite the Foundation’s reservations and some governments and regional institutions regarding a number of these classifications issued by international agencies to evaluate sovereign and country risks, this does not diminish their importance and must be monitored. The goal is to improve the situation of Arab countries and stand as an important step towards developing the investment climate and business environment in the region. In this context, he stressed the institution’s readiness to play its role in preparing specialized and comprehensive reports on the conditions of Arab countries, stressing the importance of communicating with the research teams entrusted with issuing sovereign, political, economic, financial and regional classification indicators. And operational risk assessments to improve the classifications of countries in the region and contribute to the inclusion of Arab countries that were excluded from these classifications.

The Arab Investment and Export Credit Guarantee Corporation (Daman) was established in 1974, and is headquartered in Kuwait. Its membership includes all Arab countries and four joint Arab financial institutions. It provides specialized insurance services against credit and political risks to facilitate the flow of foreign direct investments to Arab countries and encourage Arab exports and imports.

This news has been read 46 times!