Manama: The Ministry of Finance of the United Arab Emirates (UAE) announced that Moody's Ratings completed a periodic review of the country's sovereign rating on March 30, maintaining the Aa2 rating with a stable outlook.
According to Bahrain News Agency, the assessment reaffirmed confidence in the UAE's economic strength and fiscal sustainability despite ongoing regional developments. Moody's noted that the review does not constitute a rating action but reflects its ongoing evaluation of the country's credit profile.
The review highlighted key strengths, including high per capita income, strong institutional frameworks, effective policymaking, and continued progress in economic diversification. It also pointed to the federal government's low debt levels and strong financial position, supported by substantial fiscal reserves.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the unchanged rating and stable outlook reflect the UAE's strong institutional framework and effective governance. He noted that the country's fiscal strength is supported by low debt levels and a consistent record of balanced budgets.
He added that the stable outlook confirms the resilience of the UAE's credit profile, supported by fiscal buffers and prudent financial management, enabling the country to address regional and global developments.
Al Hussaini highlighted that maintaining strong investment-grade ratings reflects the effectiveness of the UAE's economic policies based on diversification, fiscal discipline, and sustainability, reinforcing its position as a global economic hub.
He also noted the Ministry of Finance's efforts to enhance public financial management, support productive sectors, and develop the UAE dirham sovereign yield curve to strengthen transparency and investor confidence.
The review also highlighted progress in increasing non-oil revenues and strengthening economic diversification, as well as the effectiveness of risk management frameworks and financial policies supporting stability and growth.
Moody's indicated that the UAE's credit profile remains resilient despite regional challenges, supported by fiscal reserves and institutional strength.
S and P Global Ratings also affirmed the UAE's sovereign rating at AA/A-1+ with a stable outlook, citing strong financial and external positions that support economic stability and investor confidence.