Tuesday, 18 October 2016

GCC governments’ financing needs to cross $560b by 2019 | GulfNews.com

GCC governments’ financing needs to cross $560b by 2019 | GulfNews.com:

"The Gulf Cooperation Council (GCC) region’s funding requirement has been mounting since 2015, when the drop in oil-related revenue turned fiscal surpluses into deficits. Although the level of deficits differs among the sovereigns in scale and duration, these could result in substantial debt issuance according to S&P Global Ratings.
The rating agency estimates that the financing needs of Gulf governments between 2015 and 2019 could reach $560 billion. According to S&P estimates, in nominal terms, GCC sovereigns’ combined fiscal deficit will reach $150 billion (12.8 per cent of combined GDP) in 2016 alone.
“As a proportion of GDP, we expect that in 2016-2019 these deficits will average around 10 per cent per year in Bahrain, Oman, Kuwait, and Saudi Arabia, and 4 per cent on average in Abu Dhabi and Qatar,” said Benjamin J Young, an analyst with S&P."



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