Gulf firms to delay investments due to oil, coronavirus shocks - S&P - Reuters

Gulf firms to delay investments due to oil, coronavirus shocks - S&P - Reuters:

Companies in the Gulf, battered by low oil prices and the coronavirus crisis, are likely to delay investments this year as they manage costs and liquidity, S&P said, cautioning a recovery would take at least a few quarters.


S&P Global Ratings has taken negative rating actions on 16 entities in the six-member Gulf Cooperation Council (GCC) and expects a mid-to-high single-digit economic contraction for most GCC countries this year.

“We expect broad-based pressure across most sectors and markets in the region but some will feel it more than others as economic activity decelerates, disposable income declines, and employment trends weaken,” the agency said in a report.

Aviation and tourism have been hit hardest, it said, particularly in Dubai, where transport and tourism are vital for the economy.