Companies in the GCC region are set to benefit from solid demand and declining interest rates that support consumption, said Martin Kohlhase, Vice President – Senior Credit Officer, Moody’s.
Favourable economic policies and ongoing investments in infrastructure and technology-based projects will aid in the companies thriving, he added.
Telecom companies profit from non-oil macroeconomic growth and regional governments’ ambitions for digitalisation and modern technologies.
Meanwhile, utilities continue to maintain a strong market position and benefit from stable and transparent regulatory frameworks, with a focus on expanding the contribution of renewables to their overall energy mix.
Kohlhase expects the regional housing market to be supported by strong demand, constrained property supply in 2025 and elevated house prices.
Operating conditions for GCC national oil and gas companies gain from resilient industry conditions and robust business profiles, with low-cost production mitigating increased volatility and potential moderation in oil prices.
Across Sub-Saharan Africa, prospects are better for 2025 after a tough 2022-2024, driven by expectations of slower depreciation of local currencies and anticipated expected rate cuts, Kohlhase said.
The major beneficiaries will be the telecommunication, real estate and construction-related industries, he added.
(Editing by Seban Scaria seban.scaria@lseg.com )
