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The United Arab Emirates (UAE) has garnered positive sovereign credit ratings from Fitch Ratings, S&P Global, and Moody’s Investors Service, reflecting strong international trust in its economic stability and fiscal strategies.
S&P Global assigned the UAE a sovereign rating of “AA” with a stable outlook on June 17.
Moody’s reaffirmed its rating for the UAE at “Aa2” with a stable outlook in its annual assessment for 2025.
Fitch maintained the UAE’s rating at “AA-” with a stable outlook on June 24.
This agreement among the three leading global credit rating agencies highlights the UAE’s solid fiscal position, placing it among a select group of nations with high sovereign credit ratings worldwide.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, remarked that these ratings confirm “deep-rooted international trust in the resilience of our national economy and the effectiveness of our fiscal strategies.”
He credited this success to a comprehensive economic vision led by UAE President Sheikh Mohamed bin Zayed Al Nahyan, with support from Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Sheikh Maktoum emphasized the UAE’s commitment to implementing economic strategies focused on diversification, transparency, and fiscal discipline, particularly in increasing non-oil revenues and ensuring financial sustainability.
He acknowledged that this demonstrates the collective efforts of government bodies and long-term strategic planning, further solidifying the UAE’s role as a flexible and credible global economic center.
He also highlighted that the Ministry of Finance is dedicated to working alongside government entities to enhance resource management efficiency, foster productive sectors, and boost the nation’s appeal to investors.
The progress made in developing the sovereign yield curve for the UAE dirham was noted as a critical achievement, improving market transparency and providing a reliable benchmark for pricing UAE dirham-denominated debt instruments.
This development, he stated, enhances the UAE’s global economic standing and its ability to address regional and international challenges by broadening the investor base and reinforcing its reputation as a reliable and appealing destination in global capital markets.
Ratings Validate UAE’s Ability to Diversify and Strengthen Non-Oil Sectors
The ratings validate the UAE’s ability to diversify its economy and bolster non-oil revenues, uphold fiscal discipline, effectively manage risks, and maintain prudent fiscal policies. These elements have significantly contributed to economic stability and sustained growth across various industries.
S&P’s report specifically highlighted the UAE’s robust financial status and the strength of the government’s consolidated sovereign assets. The agency expects that regional geopolitical tensions will have a minimal overall impact on the UAE, attributing this to the nation’s considerable sovereign wealth and consistent internal stability.
Moody’s report emphasized the UAE government’s relentless efforts to broaden and diversify its non-oil revenue streams, support the development of non-oil sectors, and enhance the country’s attractiveness to foreign investors and skilled professionals.
Despite ongoing regional geopolitical tensions, the report indicated that the UAE’s effective policy frameworks help alleviate these challenges through continued economic diversification.
Fitch’s report, while recognizing heightened geopolitical risks in the region, reaffirmed the UAE’s strong capacity to endure short-term disruptions, buoyed by substantial fiscal and external reserves.
This milestone further illustrates the UAE’s ongoing achievement in balancing fiscal stability with economic growth, reinforcing international investor confidence and reaffirming the UAE’s status as a secure and stable location for business and investment.