The Gulf economies remain insulated from economic and political turbulence in the broader MENA region, and globally, Standard & Poor's Ratings Services said in its report titled "The Gulf Economies Are Going Strong, But Structural Issues Still Weigh On The Sovereign Ratings".
"We rate seven sovereigns in the Gulf Cooperation Council (GCC): Abu Dhabi, Bahrain, Kuwait, Oman, Qatar, Ras Al Khaimah, and Saudi Arabia. All have a stable ratings outlook," the report noted.
However, structural challenges continue to constrain sovereign ratings, despite the GCC's relative wealth, it added, forecasting a 4.6 percent GDP growth in 2013. "There are still particular shortcomings in the effectiveness and predictability of policymaking in the GCC,"
Standard & Poor's credit analyst Dima Jardaneh said. "Weaknesses include the quality of policy debate; the strength and depth of institutions; transparency of decision-making; data monitoring and reliability of information; legal frameworks and the rule of law; and succession risks."
"We rate seven sovereigns in the Gulf Cooperation Council (GCC): Abu Dhabi, Bahrain, Kuwait, Oman, Qatar, Ras Al Khaimah, and Saudi Arabia. All have a stable ratings outlook," the report noted.
However, structural challenges continue to constrain sovereign ratings, despite the GCC's relative wealth, it added, forecasting a 4.6 percent GDP growth in 2013. "There are still particular shortcomings in the effectiveness and predictability of policymaking in the GCC,"
Standard & Poor's credit analyst Dima Jardaneh said. "Weaknesses include the quality of policy debate; the strength and depth of institutions; transparency of decision-making; data monitoring and reliability of information; legal frameworks and the rule of law; and succession risks."
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