Worldwide assessment bodies praise United Arab Emirates' economic robustness
A Fresh Take on the UAE's Top-Notch Sovereign Credit Ratings
The heavyweights of financial rating – Fitch Ratings (Fitch), S&P Global (S&P), and Moody's Investors Service (Moody's) – have given the UAE a nod of approval, acknowledging the nation's impressive economic standing.
Recently, S&P rated the UAE's sovereign credit at an impressive "AA" status, with a stable outlook. Meanwhile, Moody's and Fitch affirmed the UAE's ratings at "Aa2" and "AA-" respectively, also with a steady outlook. These afformations by the leading global rating agencies grant the UAE a spot among a select group of countries boasting strong credit ratings from all three major firms, attesting to international confidence in the UAE's robust economy.
The UAE's financial prowess comes from its ability to diversify income away from oil, enhancing its resilience to price fluctuations and fostering growth across sectors. Demonstrating fiscal discipline, the nation maintains a strong financial position, consolidated assets, and efficient risk management, all of which contribute to economic stability [1][2][3].
S&P's review highlights the UAE's invincibility against regional geopolitical challenges, given its substantial wealth and historical stability [1]. Moody's emphasizes the UAE's efforts to expand non-oil sectors, attract foreign investment, and retaining skilled talent. The UAE's robust policies in cultivating economic diversity effectively address regional tensions [2][3].
Fitch underscores the UAE's capacity to weather regional geopolitical strife, acknowledging its extensive fiscal and external buffers [1]. The nation's leadership, integral performance of government entities, and long-term strategic planning further strengthen its profile as a reputable global economic hub [2][3].
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, excitedly proclaimed this consensus from the global credit rating agencies as reflecting deep-rooted international faith in the UAE economy's endurance. He emphasizes the nation's commitment to policy grounded in diversification, transparency, and fiscal discipline, with a primary focus on raising non-oil revenues and ensuring financial sustainability [2].
In summary, the UAE's creditworthiness stems from its versatile economy, resolute fiscal management, efficient risk assessment, strong leadership, and substantial financial reserves. These factors underscore the UAE's solid credit standing with "AA-" from Fitch, "AA" from S&P, and "Aa2" from Moody’s, all assigned with a stable outlook [1][2][3].
Sources
- [1] A.A, "UAE economy remains sturdy amid global uncertainties: Moody's," Gulf Today, June 25, 2023. [Online]. Available: https://gulftoday.ae/business/economy/uae-economy-remains-sturdy-amid-global-uncertainties-moody-s/story-572163-details/phone/ geldnoote#_=1687756500574
- [2] Z.M, "UAE's strong sovereign ratings: An endorsement of robust economic governance," Khaleej Times, June 28, 2023. [Online]. Available: https://www.khaleejtimes.com/business/uae-business/uaes-strong-sovereign-ratings-an-endorsement-of-robust-economic-governance
- [3] M.S, "S&P reaffirms UAE's credit rating," Gulf News, June 17, 2023. [Online]. Available: https://gulfnews.com/business/economy/uae/sp-reaffirms-uaes-credit-rating-1.75536497
The UAE's "AA" credit rating by S&P and "Aa2" rating by Moody's, both with a stable outlook, are in part due to the nation's focus on business diversification and attracting foreign investment in non-oil sectors. The UAE's financial news is positive, with strong economic governance and steady strategic planning positioning the country as a reputable global business hub. Investors are particularly interested in the UAE's financial management, as it navigates regional geopolitical challenges with financial resilience and robust risk management practices.
