S&P Sees Tough Years for Dubai Property, 11% GDP Crunch on Covid
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Dubai’s economy will likely suffer a “significant shock” this year as the coronavirus pandemic and its consequences weigh on most sectors in the Middle East’s business hub, according to S&P Global Ratings.
S&P also stripped the city’s best-known real-estate developer of its investment-grade credit rating. Gross domestic product in the emirate will shrink about 11% this year, and will only recover to last year’s nominal growth levels in 2022, S&P said in astatement Thursday.
S&P cutEmaar Properties and its subsidiaryEmaar Malls from BBB-, the lowest investment grade, to BB+ and signaled that more downgrades may come. DIFC Investments Ltd. was also cut to BB+, though S&P’s outlook on its rating is stable.
63,247 in U.S.Most new cases today
-7% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.122 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.4% Global GDP Tracker (annualized), June