Distressed Debt Deals May Rise to 2009 Levels in Crisis-Hit Gulf

Distressed Debt Deals May Rise to 2009 Levels in Crisis-Hit Gulf

(Bloomberg) - The fallout of the coronavirus and oil-price collapse will offer a once-in-a decade opportunity for distressed debt investors in the Persian Gulf, according to Sancta Capital Group Ltd.. "2020 will present us with the most lucrative deep value and distressed debt investment opportunity set since the global financial crisis," said Ahmad Alanani, chief executive officer of the company, which invests in the debt and equity of under-performing companies.. The retail, healthcare , education and real estate sectors will offer the most opportunities, he said.. The oil-rich Persian Gulf is facing a prolonged downturn as the pandemic and a historic crash in oil prices add to pressure on already strained finances.. Moody's Investors Service has cut its outlook and ratings for sovereigns and companies from Saudi Arabia , the Arab world's biggest economy, to Emaar Properties PJSC, one of the region's largest listed developers, and port operator DP World.. On top of the impact of low oil prices and the virus, companies are facing other challenges, which offer opportunities for distressed debt investors..