Coronavirus to hurt GCC's real estate, hospitality, banking sectors - S&P | ZAWYA MENA Edition:
The coronavirus outbreak will have a widespread impact on the UAE and the rest of the Gulf Cooperation Council (GCC) states, affecting the hospitality, real estate, banking and export sectors, according to the latest analysis.
S&P Ratings Agency said on Wednesday that if the virus, which has now infected more than 115,000 people worldwide, is not contained soon, the GCC economies will have to grapple with lower oil prices, exports, consumer spending, property sales and lending growth.
“COVID-19 will weigh on the economies of the [GCC] region, as weakening global demand drags down oil prices and hampers important industries, such as tourism and real estate,” the ratings agency said.
“As global financing conditions deteriorate, funding costs for more-leveraged borrowers are rising and investor appetite for less-creditworthy issuers could fade. The high level of uncertainty regarding the duration and eventual severity of the crisis will increase downside risks,” S&P added.
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