Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns

Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns

**Written and disseminated to select contacts on April 1**

Ratings downgrades in Kuwait and Oman, prompted by plunging oil revenues, widening deficits and increased borrowing needs, will make accessing global funding more expensive and difficult, especially for regional economic laggard Oman. Although important, ratings do not always reflect the full picture, nor gauge investor appetite for Gulf risk once market conditions improve.

Rachna Uppal | Senior Analyst | r.uppal@castlereagh.net

Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns

Contenders in Kuwait’s line of succession

**Written and disseminated to select contacts on March 27, 2020**

Uncertainty over the line of succession is becoming an increasingly important topic for Kuwait, where political deadlock has largely prevented the ultra-wealthy and low-populated country from enacting reforms to diversify its economy and run its public finances in a more sustainable and transparent way. In the event of the passing of its ruler, Emir Sheikh Sabah (91 this year), Crown Prince (CP) Sheikh Nawaf will take power. However, at 82 years old, his reign may be short-lived. This makes the choice for CP and next-in-line for the throne highly significant.

Courtney Freer | CA Consultant | contact@castlereagh.net

Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns

Kuwait debt law delay could weigh on economic recovery post COVID-19 outbreak

**Written and disseminated to select contacts on March 18, 2020**

A new debt law allowing Kuwait to tap global debt capital markets is unlikely to be approved and implemented in the near future, although the impetus to do so may gain traction as a global rout on oil prices and economic lockdown from the COVID-19 pandemic dents revenues, further expanding the state’s budget deficit.

Rachna Uppal |Senior Analyst Business & Finance Gulf | r.uppal@castlereagh.net