RIYADH: Companies in the Gulf Cooperation Council have maintained strong credit qualities despite the economic uncertainty caused by geopolitical tensions, according to Moody’s Investors Service.

A report from the firm stated that a significant number of GCC firms continue to benefit from strong balance sheets, low leverage, and ample cash reserves, ensuring financial stability and resilience.

Outstanding debt was steady at $410 billion last year, and is likely to remain at this level in 2025, Moody’s added. 

Heightened geopolitical tensions remain the main source of near-term credit risk in the region. Sound economic and operating conditions, robust business models, effective operating execution and financial discipline, were also cited as key reasons for the stability seen by many companies.

Mikhail Shipilov, vice president and senior analyst at Moody’s Ratings, said: “This translates into good financial performance, strong credit metrics and solid liquidity, which are likely to be sustained over the next 12 months.” 

He added: “Many companies have features that mitigate geopolitical risks, which have had a limited effect so far on credit quality. These features include geographic diversification of operating assets, alternative supply routes or a focus on domestic markets.”

Many GCC companies have adopted strategic measures to mitigate risks from geopolitical uncertainties, according to the report.

Several companies have diversified their operational presence, securing stability through international markets. Alternative supply routes and a focus on domestic demand provide an additional buffer against potential disruptions, Moody’s said.

While Qatari firms remain relatively more exposed due to their asset concentration, their strong sovereign backing and liquidity reserves continue to reinforce financial resilience.

Macroeconomic conditions remain favorable for domestic-driven sectors, including real estate, telecommunications, and utilities.

Economic diversification initiatives, particularly in Saudi Arabia and the UAE, continue to drive non-hydrocarbon growth.

The UAE’s economy is forecast to have expanded by 3.8 percent in 2024, with 4.8 percent growth in 2025, supported by a buoyant real estate sector and strong foreign investment.

Saudi Arabia is set to see 3.3 percent GDP growth in 2025 and 4.8 percent in 2026, bolstered by large-scale infrastructure projects and a growing tourism sector.

Export-oriented companies, especially in the oil, gas, and petrochemical industries, continue to demonstrate resilience, according to the report.

Saudi Aramco stands out with its “immense operational scale, low production costs and downstream integration,” according to the report.

QatarEnergy benefits from vast, low-cost gas reserves and an expanding liquefied natural gas portfolio, securing its role as a major player in the energy sector.

Regional petrochemical companies leverage cost-efficient feedstock and advanced facilities to maintain a competitive edge in global markets.

The credit outlook for GCC corporates remains stable, supported by sound financial policies and government-led economic initiatives.

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the second consecutive day on Tuesday as it shed 27.67 points or 0.24 percent to close at 11,717.96. 

The total trading turnover of the benchmark index was SR7.70 billion ($2.05 billion), with 122 stocks advancing and 116 declining. 

Saudi Arabia’s parallel market Nomu also shed 268.15 points to close at 30,763.22. 

The MSCI Tadawul index declined by 0.25 percent to 1,483.35. 

The best-performing stock on the main market was Riyadh Cables Group Co. The company’s share price increased by 10 percent to SR129.80. 

The share price of Batic Investments and Logistics Co. also edged up by 6.34 percent to SR2.85.

Al-Baha Investment and Development Co. also saw its stock price rising by 5.88 percent to SR0.36. 

Conversely, the share price of Arabian Contracting Services Co. declined by 5.12 percent to SR129.80. 

On the announcements front, Mohammed Hadi Al Rasheed and Partners Co. said that its net profit for 2024 reached SR80.74 million, representing a rise of 80.58 percent compared to 2023. 

In a Tadawul statement, the company said that the rise in net profit was driven by an increase in sales and customers amid expansion in line with the company’s strategy.

Despite posting an increase in profit, the share price of Mohammed Hadi Al Rasheed and Partners Co. declined by 9.04 percent to SR142.80. 

Twareat Medical Care Co. said that its net profit witnessed a rise of 65.98 percent year on year to reach SR23.5 million. 

The healthcare firm added that its overall revenue also rose by 23.97 percent year on year in 2024, driven by improved sales strategies, new service contracts in areas like NEOM, Jubail, and Jafurah, and expanding medical services for existing clients.

Twareat Medical Care Co.’s board of directors also recommended dividends at SR0.25 per share for 2024. 

The share price of  the company edged up by 6.53 percent to SR22.50. 

Arabian Centers Co., also known as Cenomi Centers said that the firm’s net profit for 2024 stood at SR1.22 billion, representing a decline of 18.44 percent compared to 2023. 

In a Tadawul statement, Cenomi Centers revealed that its overall revenue reached SR2.34 billion in 2024, marking a year on year rise of 4.01 percent. 

It also announced that its board of directors has decided to pay a dividend of SR0.37 per share for the third quarter of 2024. 

The share price of Cenomi Centers edged up by 1.29 percent to SR20.36. 

Walaa Cooperative Insurance Co. said that it witnessed a net profit of SR64.30 million in 2024, representing a 56.55 percent decline compared to 2023. 

The insurance firm’s share price declined by 3.53 percent to SR18.04.