GCC sovereigns’ fiscal reforms progress to remain slow | ZAWYA MENA Edition

GCC sovereigns’ fiscal reforms progress to remain slow | ZAWYA MENA Edition:

Moody’s said that GCC sovereigns’ 2020 outlook is negative due to slow fiscal reform progress, weak growth, and higher geopolitical risk.

The pace of fiscal consolidation in 2020 is expected to be slow and most GCC countries have no significant new measures lined up as the focus on social stability and diversification increases.

Oman's downgrade in March 2019, following five downgrades since 2015, reflects Moody’s expectation that the scope for fiscal consolidation in the Sultanate would remain significantly constrained by the government's economic and social stability objectives.

Additionally, Moody’s said that the negative outlook change for Sharjah (A3 negative) in July 2019 was driven by the government's deteriorating fiscal position, which, in the absence of significant new fiscal consolidation measures, would point to credit metrics consistent with a lower rating.