GCC corporates to focus on preservation rather than growth: S&P | ZAWYA MENA Edition:
The key focus for GCC corporates will be on preservation rather than growth, a recent report by S&P Global Ratings has showed.
A sharp drop in oil prices and a negative impact from COVID-19 measures have been weighing on corporates in the region and worldwide. According to S&P, new investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimization, management of liquidity, and cash-flow preservation.
“Overall, the region has witnessed a decline in new investments and the reduction and postponement of capital expenditures by a number of companies, particularly those in the real-estate sector,” S&P said.
The sectors most exposed to weaker operating conditions are aviation, tourism, real estate, hospitality, nonstaples retail, and oil and gas, according to the ratings agency.
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