Sharjah Economy Slows

The economy of Sharjah, a UAE emirate, has slowed with nominal GDP growth expected to remain around 4% into 2017 compared to 6% on average in 2010-2015, said Moody’s Investors Service, TradeArabia reported. The economic slowdown pressures fiscal metrics, but Sharjah’s debt burden and debt affordability are still low and compare well with peers, Moody’s said. The recent rise in debt reflected capital expenditure and fiscal loosening to address economic slowdown on the back of lower oil prices. Sharjah’s debt increased with the issuance of a $500 million sukuk in January 2016 and a previous sukuk issuance of $750 million in September 2014. “Sharjah has diversified its sources of funding. Debt denominated in US dollars accounts for roughly half of Sharjah’s outstanding debt. International investors held 62% of the government’s debt and the share will likely increase after taking into account the 2016 issuance,” said Mathias Angonin, an analyst at Moody’s.