The UAE is ranked high by international credit rating institutions like Fitch Rating and Moody’s with a stable outlook. The rating reflects the creditworthiness of the federal government entities and their ability to draw plans for the country’s sustainable growth.
In November 2020, Fitch Ratings Inc., the US credit rating agency, rated the federal government of the UAE AA- with a Stable Outlook. The rating reflects the creditworthiness of the federal government entities and their ability to draw plans for the country’s sustainable growth while maintaining the highest performance standards for credit control backed by a large group of factors of strength.
The high rating at a time when the world is coping with the effects of COVID-19 underscores the UAE’s resilience to overcome economic challenges and develop creative economic, financial and monetary policies that enabled it to weather the COVID-19 crisis.
The rating report estimates that the total consolidated assets of sovereign funds in the UAE stand at USD 1.3 trillion (AED 4.76 trillion), while the country has large reserves of oil and gas.
Fitch rating is based on 18 indices that measure the economic, financial, banking and monetary sectors in addition to balance of payment and foreign trade.
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Read Fitch Rates the United Arab Emirates at 'AA-'; Outlook Stable.
In December 2020, the UAE Government received an Aa2 rating in creditworthiness, with a stable outlook for the national economy by the international rating agency, Moody's. The UAE received the highest sovereign rating in the region.
In its report on the sovereign credit profile of the UAE, Moody’s indicated that the UAE’s credit strength is supported by high per capita GDP, the country's internal stability and strong and broad international relations.
The agency also mentioned that the UAE has demonstrated strong institutional effectiveness by spearheading reforms and diversifying its revenue base.
As for the outlook for the national economy, the agency indicated that it was supported by the stable outlook on the sovereign rating, as well as the upside potential from continuing diversification efforts, in addition to its compliance to emergency commitments associated with government and geopolitical tensions.
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