#Sharjah's non-oil economy to remain 'below historical rates' | ZAWYA MENA Edition

Sharjah's non-oil economy to remain 'below historical rates' | ZAWYA MENA Edition:

Sharjah will not see a significant deterioration in its fiscal position this year, but it will continue to accumulate debt, and its non-oil economy will remain weak.

“Growth in the UAE’s and Sharjah’s non-oil economy [will]] remain materially below historical rates,” Moody’s Investors Service said on Tuesday.

The ratings agency has changed the emirate’s outlook from “negative” to “stable” but downgraded the long-term currency issuer ratings to Baa2 from A3, due to rising debt burden and weaker than expected financial strength.

“A significant widening of the fiscal deficit has contributed to a much faster than expected accumulation in debt last year and, in the absence of any fiscal consolidation measures, is likely to result in a markedly higher debt trajectory over the medium term, indicating weaker fiscal strength than Moddy’s had previously estimated,” Moody’s said.