For the UAE financial market, the problem is most likely to have actually restricted influence in the meantime, offered their restricted direct exposures to Russian and also Ukrainian counterparties, the score company claimed.
Financial Institutions in the UAE, Saudi Arabia, and also South Africa will certainly stay reasonably shielded from the results of the Russia-Ukraine problem because of restricted transactions with Russian and also Ukrainian counterparties while Turkish and also Tunisian financial institutions are probably to experience the adverse indirect impacts, S&P Global Rankings claimed on Monday.
For the UAE financial market, the problem is most likely to have actually restricted influence in the meantime, offered their restricted direct exposures to Russian and also Ukrainian counterparties, the score company claimed.
” Nevertheless, there might be indirect influence on the UAE because of greater oil costs and also enhanced capitalist danger hostility, although the federal government is most likely to sustain financial institutions must the demand develop. Encouraging federal government plans and also stabilizing non-oil task will certainly likewise influence financial development on the benefit,” S&P claimed in a previous record, keeping in mind that enhancing financial view and also greater hydrocarbon manufacturing must cause sped up financial development in the UAE.
The significant indirect impacts of the problem will certainly consist of greater oil costs, which will certainly strengthen oil exporting economic situations and also consider on oil importing nations, it claimed.
While greater food costs will certainly cause inflationary stress and also bank account shortages, there would certainly be enhanced capitalist danger hostility, which might raise susceptability for financial systems with considerable internet outside financial debt, S&P claimed.
” The Turkish and also Tunisian financial markets are probably to experience adverse indirect impacts, while we anticipate Saudi, United Arab Emirates, and also South African financial institutions will certainly stay reasonably shielded,” claimed S&P Global Rankings credit history expert Mohamed Damak.
Qatar and also Turkey revealed considerable susceptability in regards to financing and also liquidity because of the Russia-Ukraine problem, while the financial and also credit history development of Turkey and also Tunisia were highlighted as considerably prone because of the problem.
Egypt’s financial institutions market continues to be revealed because of the nation’s considerable dependence on staple food imports, the record specified, which included that federal government assistance might be essential to minimize the damages to the country’s economic situation.
Ukraine and also Russia represented roughly 85 percent of Egypt’s wheat imports in 2021. Greater food costs raised rising cost of living to 8.8 percent in February 2022, triggering the Reserve bank of Egypt to raise rates of interest– for the very first time in years– by 1 portion factor.
— issacjohn@khaleejtimes.com
