Companies in the Gulf Cooperation Council (GCC) region have a solid outlook this year, with credit profiles expected to remain stable despite uncertainty, according to S&P Global Ratings.
The rating agency said GCC companies were in a “good position” to manage risk despite facing falling prices and rising geopolitical tensions.
That stability is evidenced by the robust balance sheets of most rated companies. Access to sufficient cash and capital to cushion market shocks, and strong ties to highly rated sovereigns like Abu Dhabi, Saudi Arabia and Qatar.
S&P also noted that economic growth in the region will remain resilient despite the potential for Brent oil prices to fall to the $60 per barrel range in 2026 due to continued high levels of government spending to implement diversification projects and resilience in the non-oil sector.
The agency said geopolitical tensions remained a key risk, but the impact on credit was limited. However, if tensions between the US and Iran persist, the funding situation could deteriorate.
“Despite expectations for modest price declines, we expect performance for rated GCC companies to remain resilient in 2026,” S&P said.
“Economic growth will continue on the back of government spending, stable consumer demand, and population growth.”
Regarding private sector credit appetite, S&P expects credit demand to remain strong this year.
“Several companies have already accessed the market this year, issuing $9.7 billion in January 2026,” S&P noted.
(Written by Cleofe Maceda; Edited by Seban Scaria) seban.scaria@lseg.com
