Fixing the UAE’s credit rating at AA- with a stable outlook reflects confidence in the country’s ability to maintain the strength of its economy and its strong financial position in the foreseeable future.
I confirmed Fitch Credit Rating Agency Its long-term credit rating For the United Arab Emirates At AA- with a stable outlook, which reflects the solidity of the country’s financial position and the strength of its economy.
In its report issued today, Thursday, the agency indicated that this classification reflects the low level of government debt, the high per capita GDP, and the strong position of external assets. Team
Abu Dhabi, which has a similar credit rating, has government debt that is among the lowest in the world, at 15% of the expected 2024 GDP.
At the same time, the emirate maintains net sovereign foreign assets among the highest globally, reaching 225% of GDP at the end of 2023, a significant increase from the end of 2022.
Fitch expects the UAE to achieve fiscal surpluses of 5.4% and 3.6% of GDP in 2024 and 2025, respectively, after estimates of 11% in 2023.
This is largely due to the expected increase in oil production, which is expected to reach 3.375 million barrels per day by December 2025.
On the spending front, Fitch expects government spending to remain within the target range, with state-owned companies undertaking the majority of capital spending in Abu Dhabi.
