A recent report by Standard & Poor's credit rating agency included severe warnings of the impact of the Corona Virus on Gulf economies.
The biggest focus was on the export sector, as the report anticipated, 53% of the Sultanate’s total exports were affected compared to 17% for Bahrain, and the agency warned of the impact of the virus on the tourism and hotel sectors Aviation and retail trade in the Gulf.
S&P noted that the outbreak of the Corona Virus represents a source of risk for the countries of the Gulf Cooperation Council, due to the high contribution of China in the global economy, but expected that the impact will be on Sovereign ratings are limited.
The agency's report indicated that China accounts for between 4 and 45% of GCC exports, and the agency expected that the continued travel ban will affect tourism traffic, especially in Dubai.
According to the report itself, a decline in oil prices to the level of $ 40 may lead to a reduction in the sovereign rating of GCC bonds by up to two degrees, and this hypothetical scenario expects a decrease Oil prices continue to reach forty levels by 2040.
She pointed out that oil contributes about 81% on average to the revenues of the Gulf Cooperation Council countries and Iraq, noting the need to accelerate efforts to diversify government revenue sources away from oil. < / p>
