RIYADH: Most rated companies in the Gulf Cooperation Council are expected to maintain stable credit profiles in 2026 despite geopolitical uncertainty and moderately lower oil prices, according to S&P Global Ratings.
In its report, “GCC Corporate and Infrastructure Outlook 2026: Stability Despite Uncertainty,” S&P said strong credit quality, ample liquidity buffers and sovereign support should enable issuers to navigate potential tail risks. The report does not constitute a rating action.
Economic growth across the GCC is projected at 2-4 percent in 2026-27, supported by solid domestic demand, government infrastructure spending and rising hydrocarbon output.
Diversification efforts are gradually reducing volatility. Non-oil sectors now account for about 75 percent of GDP in the UAE and 71 percent in Saudi Arabia, while average inflation across the bloc is expected to hold steady at around 2 percent over the next two years.
Geopolitical tensions remain a key downside risk. While S&P’s base case assumes limited credit impact, it cautioned that severe disruptions — such as a temporary closure of the Strait of Hormuz — could hamper oil exports, tighten financing conditions and pressure corporate performance.
