RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.
S&P downgrades trio of Dubai developers as pandemic hits property and retail
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S&P downgrades trio of Dubai developers as pandemic hits property and retail
- Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices
Saudi Arabia, Turkiye sign government agreement on renewable energy power plant projects
RIYADH: Saudi Arabia and Turkiye have signed an agreement on renewable energy power plant projects.
This took place during the official visit of Turkish President Recep Tayyip Erdogan to the Kingdom and within the framework of strengthening bilateral relations as well as consolidating strategic cooperation between the two countries in the energy sector.
The agreement was signed on the Saudi side by Prince Abdulaziz bin Salman, minister of energy, and by Alparslan Bayraktar, minister of energy and natural resources, on behalf of the Turkish side.
The agreement aims to enhance cooperation between the two countries in the fields of renewable energy and green technologies, and to support the development and implementation of high-quality projects that contribute to diversifying the energy mix, enhancing energy security, and accelerating the transition to a low-carbon economy, in line with the priorities and strategies of both countries.
The agreement includes the development and implementation of solar power plant projects in Turkiye, with a total installed capacity of up to 5,000 megawatts, in two phases.
The first phase entails two solar power projects in Sivas and Karaman, with a total capacity of 2,000 MW. The second phase includes additional projects to be implemented according to the frameworks agreed upon by both parties, with an additional capacity of 3,000 MW.
The projects in the first phase offer highly competitive electricity prices compared to other renewable energy plants in Turkiye. Furthermore, these plants, representing an investment of approximately $2 billion, will supply electricity to more than two million Turkish households.
A Turkish state-owned company will purchase the electricity generated by these plants for a period of 30 years. During the implementation of the projects, the local use of equipment and services will be maximized.
Both sides affirmed that this agreement represents a significant step towards strengthening the investment partnership between the Kingdom and Turkiye.
It also reflects the mutual trust between the two countries and their shared commitment to expanding cooperation in strategic projects with sustainable economic and developmental impact, in accordance with best international practices, while contributing to knowledge transfer, capacity building, and achieving mutual benefits for both nations.
Trade exchange between the Kingdom and Turkiye increased by approximately 6 percent year on year during the first 11 months of last year, reaching around SR28.2 billion ($7.5 billion), according to the Financial Analysis Unit at Al-Eqtisadiah newspaper, based on data from the General Authority for Statistics.
This indicates the continued development of trade relations between the two countries and improved flows of goods,
The data revealed that Saudi exports constituted 58 percent of total trade exchange, compared to 42 percent for imports, resulting in a trade surplus for Saudi Arabia of SR4.4 billion.
During this period, Saudi exports amounted to approximately SR92.6 billion, compared to imports of Turkish goods worth SR48.3 billion, resulting in a cumulative trade surplus in favor of Saudi Arabia of SR44.3 billion.
Speaking at the Saudi-Turkiye Investment Forum 2026, Chairman of the Saudi-Turkish Business Council Sami Al-Osaimi said that 1,400 Saudi companies are in Turkiye with investments exceeding $18 billion, compared to 390 Turkish companies investing in the Saudi market, according to a statement.
