Moody’s Expands Debt Rating Coverage in Middle East: Meeting Local Market Needs and Forecasting Future Growth

Moody’s Investors Service has been steadily expanding its debt rating coverage in the Middle East since opening its office in April 2007. Over the years, the UAE has undergone significant changes, with increased investment and economic diversification away from oil revenues.

Abdullah Hudhud, Head of Middle East Relations at Moody’s, highlighted the agency’s on-the-ground presence and its ability to meet local market needs during the 17th anniversary of its office in the Dubai International Financial Centre. Moody’s has provided ratings for major banks, real estate companies, infrastructure projects, and insurance companies in the Middle East. The agency now provides ratings for 189 companies and institutions in the region and aims to rate 90% of total debt issued in the debt capital markets by the end of 2023. These ratings play a critical role in facilitating investment decisions, including foreign direct investment.

Looking ahead, Hudhud identified the UAE and Saudi Arabia as major potential growth markets for debt issuers seeking ratings. He mentioned strong issuance of dollar sukuks across the MENA region and expected continued growth in the real estate market in Dubai. The UAE’s investment in renewable technologies, such as wind and solar energy, has also attracted significant attention and financing through green bonds.

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. Overall, 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.

Moody’s has been expanding its coverage of debt ratings in