Moody’s: GCC Firms Maintain Strong Credit Quality Amid Economic Growth

UAE, 17 March, 2025 :  GCC companies are maintaining strong credit quality, supported by solid financial performance, sound liquidity, and disciplined financial management, according to Moody’s Ratings.

Moody’s highlighted stable debt levels at around $410 billion and a rise in cash holdings from $125 billion in 2019 to $200 billion in 2023, driven by the strong performance of oil, gas, and petrochemical firms. Economic diversification and stable oil prices continue to benefit key sectors like real estate, telecoms, and utilities.

The UAE’s economy is expected to grow by 3.8% in 2024 and 4.8% in 2025, while Saudi Arabia is projected to see 3.3% growth in 2025 and 4.8% in 2026. National oil companies, including Saudi Aramco and QatarEnergy, maintain strong operational profiles with low production costs.

Despite positive market conditions, Moody’s cautioned that geopolitical tensions remain a key near-term credit risk for the region.