DUBAI: The outlook this year for sovereign ratings in the GCC is “negative,” according to ratings agency Moody’s in a new report highlighting geopolitical risks and muted economic growth as factors undermining the creditworthiness of the region.
“Although oil prices have risen significantly from their lows in early 2016, most sovereigns in the region will continue to run sizable fiscal deficits and record an increase in their debt burdens over the next 12 to 18 months,” said Steffen Dyck, vice president as senior credit officer at Moody’s.
“In addition, long-standing geopolitical event risks have come to the fore again and will play an important role in defining sovereign credit quality in 2018.”
The report forecast a slight increase in GDP growth of close to 2 percent this year across the GCC.
While regional government debt burdens are set to rise, the report said, the speed of growth will vary from country to country. Bahrain’s debt is expected to approach 100 percent of GDP by 2019.
Kuwait and Saudi Arabia’s debt burdens are forecast to increase, but at lower levels in comparison to Bahrain, according to the report. Qatar and the UAE’s debt is expected to stabilize in 2018 and 2019.
Regional geopolitical tensions are likely to persist in 2018, with Moody’s anticipating that the diplomatic and economic boycott of Qatar by the Saudi Arabia-led group of Arab countries will continue throughout 2018 and possibly longer.
Three out of the six Gulf Cooperation Council (GCC) countries currently have negative rating outlooks, according to Moody’s, with the remaining countries having stable outlooks.
This is an improvement compared to the start of 2017 when four out of six had negative outlooks. Qatar, Oman and Bahrain all saw their credit rating downgraded last year by Moody’s.
‘Negative’ outlook for Gulf sovereign ratings in 2018, says Moody’s
‘Negative’ outlook for Gulf sovereign ratings in 2018, says Moody’s
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
