GCC maintains capital investment spending for growth: S&P

08/10/2015 07:10 AST

Governments of members of the Gulf Cooperation Council (GCC) are maintaining capital investment spending to support economic activity, despite rising fiscal pressures from falling oil prices, Standard & Poor’s Ratings Services said on Wednesday in a report titled: “Gulf Governments Protect Investment Spending To Support Growth.”

“Even though we forecast GCC economic growth will slow and fiscal deficits will emerge following the more than 50 per cent drop in oil prices since June 2014, we expect governments will keep capital investment relatively high as a share of total government spending in an attempt to buoy economic growth,” Standard & Poor’s credit analyst Trevor Cullinan said.

However, should oil prices fall much below our current expectations and government balances weaken further as a result, we expect GCC governments will increasingly cut back on investment expenditure.

“We believe GCC governments may also look to domestic and international capital markets to diversify their funding sources, support economic growth, build debt capital markets, and slow the depletion of their asset positions,” added Cullinan.


The Gulf Today

Most Viewed Companies

Ticker Price Volume
SABIC 114.77 5,915,941
SAMBA 26.98 1,138,683
STC 83.41 257,644
DARALARKAN 13.47 74,648,349

Recent News

Saudi Public Investment Fund signs agreement with Six Flags to create amusement park in Riyadh

05/04/2018

Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa

Arab News

Green energy drive will boost KSA employment: Saudi Arabia’s renewable energy chief

05/04/2018

In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.

A massiv

Arab News

Dubai house prices, rents drop in first quarter of 2018

05/04/2018

Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices

The National

Saudi Arabia lifts GCC index buoyed by strong oil prices

05/04/2018

Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re

Times of Oman

Banks’ real estate credit at QR147.7bn

05/04/2018

Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i

The Peninsula

logo

Financial Information Co.

P.O. Box 69410, Riyadh 11547, Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2024, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap