FeaturedKuwait News

Moody’s optimistic about Kuwait’s ‘modest financial deficit’

Moody’s is optimistic about Kuwait’s budget, anticipating a balanced performance or a modest financial deficit. Kuwait is exploring the establishment of a new sovereign wealth fund for local investments. The agency expects the UAE and Qatar to achieve financial surpluses, while Kuwait, Oman, and Saudi Arabia may record modest financial deficits or a balanced budget.

Moody’s projects the average price of a barrel of oil for hydrocarbon-exporting countries to be $83 in 2024, remaining unchanged from 2023 but higher than the $68 level observed between 2018 and 2019. Despite OPEC+ production restrictions, rising oil prices contribute to a favorable financial environment.

Kuwait aims to diversify income sources through its 2023-2027 development plan, encompassing 103 projects in non-oil sectors, reports Al-Anba daily.

The financial situation is generally stable for most Middle East and North Africa governments. While financial balances are expected to be slightly in deficit or surplus, weaker sovereigns may face financial and liquidity pressures, particularly with high interest rates and limited capital flows to emerging markets.

Sovereign government debt burdens are anticipated to remain stable, except for Kuwait, Oman, and Qatar. Oman and Qatar prioritize debt repayment, whereas Kuwait does not have new public debt legislation.

Read Today's News TODAY...
on our Telegram Channel
click here to join and receive all the latest updates t.me/thetimeskuwait

Back to top button