Moody's: The UAE enjoys the best credit rating among countries in the region

Moody's said that the UAE has the best credit rating among the countries in the region at a stable Aa2 level, and it is among the economies with the lowest credit risk for asset managers in terms of ease Access to investors, the power of asset managers and the performance of investment products, and with them, Saudi Arabia and Kuwait.

The agency expects, in a report issued on Monday, that the initiatives taken by the UAE during the past period will contribute to improving and developing the regulatory and legislative structure of the economic and financial sectors in strengthening the position of The country as a global financial and trade center.

The report indicated that the UAE has witnessed in recent years important updates in the legislative and regulatory structure that have improved market efficiency, liquidity and investor security, and are likely to help attract investment. The foreigner, despite the relatively high geopolitical risks in the region.

The agency stated that among the most prominent regulatory and legislative initiatives in the UAE recently, the mutual recognition mechanism announced by the Securities and Commodities Authority in March 2019, and the Financial Services Regulatory Authority In the Abu Dhabi Global Market and the Dubai Financial Services Authority, which allows funds licensed by any of the three entities, to promote their products in the UAE, in addition to issuing a foreign direct investment law that allows foreign investor ownership of up to 100% in specific sectors, in addition to a program Long-stay, which gives foreign investors a residence visa for 10 years.

The report believes that the Coronavirus pandemic, low oil prices and geopolitical tensions are pressing factors on the profitability of the asset management sector in the region, pointing out that the plans of the GCC governments aiming to privatize Some government assets can act as an incentive to offset these risks.

The agency indicated in its report that the profitability of the asset management sector in the GCC countries will face medium to high pressure during the next 12-18 months.

(Amazon Fun Knowledge)