Fiscal ratings indicate Gulf economies have a range of tools to deal with economic and geopolitical turbulence
DATA FROM FIRST ARAB BANK ON THE GCC AND ITS OIL REVENUES, FISCAL DEFICITS, AND OTHER INDICATORS
The chart shows that Gulf sovereigns are rated favourably as compared to many of their peers within the EMEA region. Indeed Abu Dhabi and Kuwait have maintained their AA ratings from all major rating agencies despite the recent lower oil price environment. The ratings of these sovereigns underpin the fact that they have substantial reserves and a range of tools available to them to deal with such a situation including regional geopolitical threats.