Arab states require an increase in credit ratings

Arab states require an increase in credit ratings

Arab states – Qatar and Saudi Arabia called up to international rating agencies to reconsider their credit ratings towards raising. According to The Financial Times, for example, Ibrahim al-Assaf, the Minister of Finance of Saudi Arabia, as well as Ibrahim Al-Assaf Yusuf Kamal, the Minister of Finance of Qatar, believe that the ratings of their countries are undeservedly underestimated, and they must be revised. In their opinion, Qatar and Saudi Arabia deserve the highest ratings – “aaa”. Such a high level, at the request of officials, corresponds to a good financial situation in their countries.

Representatives of the rating agencies explained that when determining the state rating, not only indicators of the financial condition of the countries are taken into account, but also a number of other important factors. One of the most important is an indicator of political stability in the country. In addition, experts believe that the assessments of the Arab countries are lower because all the decision -making mechanisms are opaque there. Another important indicator affecting the rating is the degree of dependence of the country on raw materials exports, and, as you know, the Arab countries mainly earn money on this.

At the moment, the level of political stability in the states of the region remains very low. This is confirmed by a series of uprisings that occurred in the region, which are called “Arab Spring”. During these rebellions and uprisings, the regimes were overthrown in Tunisia, Libya and Egypt. Civil War in Syria is going on to this day.

These uprisings became a motive for some political and economic reforms in other countries, but in some, such political regimes continue to remain in power and do not conduct any changes. For example, in Qatar, Emir Hamad Bin Khalifa al-Tani ruled in Qatar, who overthrew his father at 13 years ago, King of Saudi Arabia Abdullah has been on the throne since 1996.

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