Fitch Revises Outlook on Iraq to Stable

 Fitch Ratings revised the outlook on Iraq’s long-term foreign-currency Issuer Default Rating (IDR) to Stable from Negative. (AFP)
Fitch Ratings revised the outlook on Iraq’s long-term foreign-currency Issuer Default Rating (IDR) to Stable from Negative. (AFP)
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Fitch Revises Outlook on Iraq to Stable

 Fitch Ratings revised the outlook on Iraq’s long-term foreign-currency Issuer Default Rating (IDR) to Stable from Negative. (AFP)
Fitch Ratings revised the outlook on Iraq’s long-term foreign-currency Issuer Default Rating (IDR) to Stable from Negative. (AFP)

Fitch Ratings has revised the outlook on Iraq's long-term foreign-currency Issuer Default Rating (IDR) to stable from negative and affirmed the IDR at “B-”.

The outlook revision reflects a smaller-than-expected decline in foreign reserves and materially higher oil prices relative to Fitch's baseline in April 2020.

Iraq’s rating is constrained by commodity dependence, weak governance, high political risk and an undeveloped banking sector.

Fitch expects government debt per GDP to decline in 2021 to 74 percent, before increasing gradually towards 80 percent over the medium term.

Political risks, domestic and regional, constrain the rating, it explained, expecting reserves to stabilize in 2021 as stronger oil prices and the devaluation narrow the current account deficit (CAD).

In other news, spokesman for Iraq’s Ministry of Electricity Ahmed al-Abadi said the US General Electric Co will take over Iraq's transmission network and interconnection with the electricity grid of Jordan.

In press statements on Wednesday, Abadi said the electric interconnection projects with neighboring countries are vital and contribute to supplying Iraq with power.

The project will take 26 months to be implemented and will supply Iraq with 150 megawatts of electric power.

Details of the project's launch phase will be set after approving the country’s 2021 state budget law.

In 2019, Iraq signed a deal with the GCC to build a power line that would import 500 megawatts of electricity.

According to Abadi, the project was activated but was later suspended due to the coronavirus pandemic and the global economic crisis.

He pointed out that the government agreed to open headquarters for the GCC Interconnection Authority (GCCIA) to later proceed with the project’s implementation.



Saudi Red Sea Authority, Insurance Authority to Launch Saudi 1st Coastal Tourism Insurance Product

Saudi Red Sea Authority, Insurance Authority to Launch Saudi 1st Coastal Tourism Insurance Product
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Saudi Red Sea Authority, Insurance Authority to Launch Saudi 1st Coastal Tourism Insurance Product

Saudi Red Sea Authority, Insurance Authority to Launch Saudi 1st Coastal Tourism Insurance Product

The Saudi Red Sea Authority (SRSA) and the Insurance Authority have signed a cooperation agreement to launch insurance products that cover risks associated with all coastal tourism activities through local insurance companies, according to a press release issued by SRSA.
This initiative aims to enhance the appeal of coastal tourism, attract participants in navigational and marine tourism activities, and strengthen local content in alignment with Saudi Vision 2030, SPA reported.
The agreement was signed by SRSA CEO Mohammed Al Nasser and Insurance Authority CEO Eng. Naji Al-Faisal Al-Tamimi.
The release noted that the launch of these insurance products aligns with SRSA's mandate to promote navigational and marine tourism, providing a comprehensive tourism experience and establishing a model infrastructure that attracts investment in the sector.
The Insurance Authority is similarly committed to fostering industry growth and development by coordinating with other government entities to enhance its activities through a range of innovative insurance products that stimulate and protect investments.
In partnership with the Insurance Authority, SRSA held a series of meetings with insurance companies to develop these products, aiming to enhance the appeal of navigational and marine tourism activities—including sailing, kayaking, water skiing, diving, boating, and surfing—to better serve practitioners' needs.
SRSA began its efforts to build and regulate the coastal tourism sector in 2021, with objectives that include enhancing integration among relevant entities by issuing licenses and permits, developing policies and strategies, determining infrastructure requirements, preserving the marine environment, enabling small and medium-sized enterprises (SMEs), and promoting navigational and marine tourism activities, thereby adding value to the national economy.
Established by Cabinet Resolution No. 85 on August 15, 2023, the Insurance Authority is responsible for organizing, stabilizing, and developing Saudi Arabia's insurance sector. Benefiting from legal personality, financial and administrative independence, and organizational affiliation with the Prime Minister, the Authority is dedicated to increasing insurance awareness, safeguarding the rights of the insured and beneficiaries, contributing to financial stability, and reinforcing the principles underlying insurance contractual relationships.