Moody’s Investors Service has expanded its debt rating coverage in the Middle East since opening its office in April 2007, with a focus on meeting local market needs. As Abdullah Hudhud, Head of Middle East Relations at Moody’s, stated during the 17th anniversary of the Dubai office, the UAE has undergone significant changes in the past seventeen years due to increased investment and economic diversification initiatives.
Today, Moody’s evaluates 189 companies and institutions across the region and has provided ratings for nearly 90% of the total debt issued in the debt capital markets by the end of 2023, amounting to $154 billion. These ratings play a crucial role in facilitating investment decisions and foreign direct investment by offering an independent assessment of credit risk.
Looking towards the future, Moody’s sees great interest in the UAE’s investments in renewable technologies, such as wind and solar energy, as part of the country’s commitment to energy transition and sustainability goals. In addition to traditional ratings, Moody’s has developed products like Second Party Opinions (SPOs) to help issuers and investors navigate the evolving landscape towards sustainable practices.
Moody’s expects economic growth in Saudi Arabia to accelerate to more than 5% in 2024, driven by both the oil sector and non-oil sectors such as tourism, trade, and transportation. The real estate market is also expected to remain healthy in Saudi Arabia despite slowing demand compared to previous years.
Overall, Moody’s sees strong demand for credit ratings and debt capital markets in both Saudi Arabia and other major potential growth markets for debt issuers seeking ratings. The agency continues to focus on providing independent assessments of credit risk while also expanding its offerings to support issuers on their journey towards sustainable practices.
