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GCC businesses to maintain strong credit profiles in 2026: S&P

Companies in the Gulf Cooperation Council (GCC) region have a resilient outlook this year with their credit profiles expected to remain stable despite uncertainty, according to S&P Global Ratings.

The ratings agency said that even as GCC corporates face lower prices and heightened geopolitical tensions, they are in a "good position" to manage risks.

The stability is evidenced by the robust balance sheets of most rated entities; sufficient cash and access to funding to buffer against market shocks, and strong ties to highly rated sovereigns like Abu Dhabi, Saudi Arabia and Qatar.

S&P also noted that, with the continued high levels of government spending to implement diversification projects and the resilience of non-oil sectors, economic growth in the region will remain resilient despite a potential drop in Brent oil prices to the $60 a barrel mark in 2026.

The agency said that geopolitical tensions remain a key risk, but the credit impact will be limited. Financing conditions could, however, deteriorate if the tensions between the US and Iran persist.

"Despite our forecast of moderately lower prices, we expect rated GCC companies’ operating performance to remain resilient in 2026," S&P said.

"Economic growth will continue on the back of government spending, steady consumer demand and population growth."

As for credit appetite in the private sector, S&P expects demand for financing will remain strong this year.

"Several companies have accessed the market already this year, issuing $9.7 billion in January 2026,” S&P noted.