S&P revises Sharjah outlook to stable

S&P said it revised its outlook for Sharjah to stable from negative and affirmed its BBB- ratings.

“We expect Sharjah's overall fiscal position to gradually stabilize over the period to 2026, with the primary fiscal deficit (the deficit excluding debt interest costs) trending toward balance, in line with the government's medium-term fiscal outlook (MTFO). Our improved fiscal forecasts are based on the lower-than-expected fiscal deficit in 2022, the initial steps we expect in 2023 to reduce the government's still-large fiscal deficit via expenditure controls and new revenue-raising measures, and our inclusion of estimates for corporate tax revenue from 2024,” S&P said in a statement.

The agency said it forecasts revenue will increase by 18% in 2023, which is in line with the government’s budget.

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