Dhaman Report: Arab Countries Risk Ratings Decline Amid Regional Challenges

Amman: The Arab Investment and Export Credit Guarantee Corporation (Dhaman) reported a decline in sovereign and political, economic, financial, and operational risk ratings across several Arab nations over the past year. This decline, based on 30 indicators from 15 leading global credit rating and risk assessment agencies, reflects heightened political events, intensified aggression in Gaza, and ongoing conflicts in Sudan, Yemen, and other Arab states. Additionally, decreased oil production and revenues, coupled with rising living costs and debt crises, contributed to the downturn in growth rates. Abdullah Subaih, Director-General of Dhaman, emphasized the organization's ongoing monitoring of sovereign evaluation and risk indicators, crucial for determining multinational companies' and financial institutions' interest in Arab countries. He noted both stability and improvement in sovereign ratings for certain Arab nations, such as Qatar, the Emirates, Saudi Arabia, and Oman, contrasted by declines in Morocc o, Egypt, Tunisia, and Lebanon. Gulf Cooperation Council countries, followed by Morocco, Jordan, and Egypt, ranked highest in risk assessments across various categories. Economic risks, including economic contraction, inflation, and public debt, topped the list of expected threats to Arab nations over the next two years, as per the World Economic Forum. Subaih stressed the importance of regional efforts to enhance political, security, economic, and financial stability, considering external factors like oil prices, trade movements, and international conflicts, including the Ukrainian-Russian war and the American-Chinese conflict. Despite some reservations about international classifications, Subaih underscored their significance in improving Arab countries' investment and business environments. Dhaman stands prepared to provide detailed reports on each Arab nation's status and collaborate with research teams to enhance regional classifications. Established in 1974, Dhaman operates as a multilateral instit ution headquartered in Kuwait, offering insurance services against credit and political risks to facilitate foreign direct investment and support Arab exports and imports. Source: Jordan News Agency