The 2026 sovereign credit outlook for the Middle East region is stable, said S&P Global Ratings, reflecting its expectation of continued economic and credit resilience despite persistent and elevated geopolitical tensions and lower oil prices.
S&P Global Ratings' report, "Middle East Sovereign Rating Outlook 2026: Stable Through Geopolitical And Oil Price Volatility", said strong government balance sheets and increasing policy and fiscal flexibility across much of the region will act as protective buffers to potential shorter and longer-term external pressures.
It forecast average regional growth to accelerate slightly to about 3.5%, boosted by both oil and nonoil activity, although contributions differ throughout the region.
Heightened geopolitical risk is unlikely to disrupt credit channels except in the case of severe events, but could deter investment, reinforce fiscal dependence on oil, and maintain expenditure pressures, it said. - TradeArabia News Service
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