Moody’s Investors Service has been expanding its debt rating coverage in the Middle East for over a decade. The agency opened its office in April 2007 and has since provided ratings for major banks, real estate companies, infrastructure projects, and insurance companies in the region. With an on-the-ground presence, Moody’s is able to meet local market needs and provide critical ratings that facilitate investment decisions, including foreign direct investment.
Over the years, the UAE has undergone significant changes, with increased investment and economic diversification away from oil revenues. As the country continues to grow, Moody’s expects economic growth to accelerate in the coming years, driven by various sectors such as tourism, trade, and transportation. The real estate sector is expected to remain healthy, although demand may slow, leading to improved margins for home builders.
Looking ahead, Moody’s identified the UAE and Saudi Arabia as major potential growth markets for debt issuers seeking ratings. The agency expects continued growth in the real estate market in Dubai and strong issuance of dollar sukuks across the MENA region. In addition to traditional ratings, Moody’s has developed products to help issuers and investors navigate the evolving landscape. These include Second Party Opinions (SPOs), which assess an issuer’s alignment with international sustainability standards.
Moody’s sees continued demand for credit ratings and debt capital markets in the UAE and Saudi Arabia and remains committed to supporting the region’s economic growth and transition towards sustainability.
