With a strong and stable credit rating the UAE is among the world's elite economies. - Beacon

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Wednesday, June 25, 2025

With a strong and stable credit rating the UAE is among the world's elite economies.

With a strong and stable credit rating the UAE is among the world's elite economies.

The UAE is among the world's elite economies


 With a strong and stable credit rating, the UAE is among the world's elite economies.


The UAE Ministry of Finance announced that the three major international credit rating agencies, Fitch Ratings, S&P Global, and Moody's Investors Service, have affirmed the UAE's sovereign rating. This move reflects continued international confidence in the strength of the UAE's economy and the sustainability of its financial policies.


On June 17, 2025, S&P Global affirmed the UAE's sovereign rating at "AA" with a stable outlook. Moody's affirmed the UAE's sovereign rating at "Aa2" with a stable outlook in its 2025 annual review. Fitch Ratings also affirmed the UAE's rating at "AA-" with a stable outlook on June 24, 2025. This consensus by the three global rating agencies reflects the UAE's advanced financial standing and reinforces its position as one of the elite countries with strong credit ratings from all major agencies worldwide.


On this occasion, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: "The affirmation by the three global credit rating agencies of the UAE's sovereign rating and their unanimous affirmation of the stable outlook reflects the unwavering international confidence in the strength of the national economy and the efficiency of its financial policies.


 It is a culmination of the comprehensive economic vision adopted by the country under the leadership of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai."


The UAE... on the Global Economic Map


Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum affirmed that the UAE continues to implement economic policies based on diversification, transparency, and fiscal discipline, with a focus on enhancing non-oil revenues and achieving fiscal sustainability. This reflects the integration of government performance and long-term strategic planning, which strengthens the country's position as a resilient and highly credible global economic hub.


Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum added: "At the Ministry of Finance, we are committed to continuing to work with all government entities to enhance the efficiency of resource management, develop productive sectors, and enhance investment attractiveness.


 The development of the sovereign yield curve for the dirham was an important milestone in establishing transparency in the market, providing investors with a reliable reference for pricing dirham-denominated debt instruments. This contributes to strengthening the UAE's position on the global economic map and supports its ability to confidently address regional and international challenges and changes by expanding the investor base and consolidating its reputation as a reliable and attractive destination in global capital markets."


The ratings confirm the UAE's ability to diversify and enhance its non-oil revenues, achieve remarkable fiscal discipline, and demonstrate efficient risk management and commitment to implementing sound fiscal policies. These have positively impacted economic performance and sustained growth across various sectors.


The S&P Global report reflects the agency's assessment of the UAE's strong financial solvency, along with the strength of the government's consolidated sovereign assets. The agency also expects that regional geopolitical tensions will, on the whole, have a limited impact on the UAE, given its large asset base and track record of internal stability.


Moody's Report on the UAE Economy


The Moody's report highlights the UAE government's ongoing efforts to expand and diversify non-oil revenue sources, promote the development of non-oil sectors, and enhance the country's attractiveness to foreign investment and talent. Despite the surrounding regional geopolitical tensions, the UAE's effective policies are contributing to mitigating these challenges by strengthening economic diversification efforts.


For its part, Fitch Ratings noted in its report the rise in geopolitical risks in the region, but emphasized the UAE's ability to absorb short-term turbulence, based on its substantial financial and external reserves.


It's worth noting that this achievement is further confirmation of the UAE's success in achieving a balance between financial stability and driving growth, enhancing international investor confidence and cementing the country's position as a safe and stable destination for business and investment.

2 comments:

  1. With its strong and stable credit rating, the UAE is among the world's elite economies. The UAE is a leader in many areas.

    ReplyDelete
  2. The United Arab Emirates is among the world's elite economies. A pioneer in many fields, its economy is strong.

    ReplyDelete