The cost of insuring against sovereign debt defaults in the Gulf states has risen sharply over the past year, contrasting with a global decline, according to a report by Chaucer. This increase, driven by a 22% fall in Brent Crude oil prices and growing geopolitical tensions, has led to significant hikes in Credit Default Swap (CDS) prices for countries such as Kuwait and Saudi Arabia. Kuwait recorded a 60% increase, while Saudi Arabia’s CDS prices rose by 15%. This trend raises concerns over potential government contract cancellations, particularly impacting businesses in infrastructure and construction sectors reliant on government contracts.
