Moody’s Investors Service in the Middle East: Steady Expansion and Adaptation

Moody’s Investors Service has been steadily expanding its debt rating coverage in the Middle East since opening its office in April 2007. Over the years, the UAE has undergone significant changes, with increased investment and economic diversification away from oil revenues.

Hudhud noted that Moody’s has evolved over its 115-year history and is now part of a larger company. The agency provides ratings for 189 companies and institutions in the region and aims to rate 90% of total debt issued in the debt capital markets by the end of 2023. These ratings play a critical role in facilitating investment decisions, including foreign direct investment.

Moody’s has provided ratings for major banks, real estate companies, infrastructure projects, and insurance companies in the Middle East. Looking ahead, Hudhud identified the UAE and Saudi Arabia as major potential growth markets for debt issuers seeking ratings. He mentioned strong issuance of dollar sukuks across the MENA region and expected continued growth in the real estate market in Dubai. The UAE’s investment in renewable technologies, such as wind and solar energy, has also attracted significant attention and financing through green bonds.

In addition to traditional ratings, Moody’s has developed products to help issuers and investors navigate the evolving landscape. These include Second Party Opinions (SPOs), which assess an issuer’s alignment with international sustainability standards. Overall, Moody’s sees continued demand for credit ratings and debt capital markets in the UAE and Saudi Arabia and remains committed to supporting the region’s economic growth and transition towards sustainability.

Overall, Moody’s Investors Service has been steadily expanding its presence in the Middle East since opening its office in Dubai International Financial Centre (DIFC) over a decade ago. As an on-the-ground presence allows them to meet local market needs better than ever before.

Abdullah Hudhud, Head of Middle East Relations at Moody’s emphasized that their agency’s ability to adapt over time is crucial for success.”Our evolution over our 115-year history has allowed us to keep up with changing market conditions,” he said during their anniversary celebration.

The UAE’s economy has changed significantly since then with increased investment diversification away from oil revenues being one of them. The country’s real estate sector is expected to remain healthy but may slow down due to changing market demands.

Looking ahead, Hudhud identified Saudi Arabia as another major potential growth market for debt issuers seeking ratings.

Moody’s will continue providing traditional ratings as well as innovative products that help issuers navigate evolving landscapes like Second Party Opinions (SPO). They remain committed to supporting economic growth while promoting sustainability practices across different sectors such as tourism, trade, transportation etc.