The Bahrain Association of Banks (BAB) has said that Standard & Poor's revised Bahrain's outlook from stable to positive, boosting the kingdom's financial reputation. It also lowers the cost of public debt while increasing investor confidence in the national economy. 

 

The association predicted that the rest of the international credit rating agencies would follow suit in the near future.

 

The financial sector and banks in Bahrain reacted positively to the news of Bahrain's credit rating improvement, according to Adnan Yousif, Chairman of BAB, especially since this improvement will soon be reflected in the classification of financial and banking institutions themselves.

 

Conditions improving

"With the increase in oil prices, the success of the fiscal balance programme, and the resumption of economic growth, particularly in the non-oil sectors, all signs unequivocally show that the financial and economic conditions in Bahrain are beginning to improve. The credit situation and domestic liquidity both benefit from all of this," Yousif said.

 

Yousif added that the increase in Bahrain's credit rating also highlights the significance of the substantial economic reforms that the esteemed government has been implementing lately, which have produced fruitful outcomes despite the challenging economic circumstances that the world is experiencing, and once again demonstrates Bahrain's ability to achieve financial and monetary stability through the prudent policies it adheres to. 

 

More investments

Dr Waheed Al Qassim, CEO of BAB, explained the importance of this new credit rating in attracting more investments to Bahrain, and said: "While many countries around the world are experiencing deficits in their budgets, a decline in their economic performance and a decrease in their credit rating, Bahrain is experiencing the opposite trend, which encourages more investments to come to the kingdom, resulting in economic prosperity, job opportunities and overall development." 

 

"We are more committed than ever to promoting Bahrain's balanced economic policy, which focuses on diversifying the economy and fostering the private sector, and to highlighting the benefits of Bahrain as the first destination for foreign investments.”

 

Dr Al Qassim pointed out that the fiscal and monetary policies implemented by Bahrain have improved the financial stability of the kingdom and helped to mitigate the adverse effects of economic challenges. This rating will be reflected positively on Bahrain's banks and financial institutions, enhancing their solvency and liquidity and their capacity to support the country's economic recovery by increasing their activity in the fields of deposits and lending and entering into financing major projects such as energy, infrastructure and other projects.-- TradeArabia News Service