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Asharq Al-Awsat
Asharq Al-Awsat
Dubai - Asharq Al-Awsat

Moody’s Assigns Aa2 Rating to UAE with Stable Outlook

The aerial view of downtown Dubai at sunset on April 25, 2018 in Dubai, United Arab Emirates. (Getty Images)

The UAE government received an Aa2 rating in creditworthiness with a stable outlook for the national economy by the international rating agency, Moody's.

In its report on the sovereign credit profile of the UAE, Moody’s indicated that the country’s credit strength is supported by its high per capita GDP, internal stability and strong and broad international relations.

Sheikh Hamdan bin Rashid Al Maktoum, the deputy ruler of Dubai and minister of finance, said that the new classification reflects the strength and resilience of the country's economy and its ability to overcome various challenges, especially in light of the extraordinary circumstances that the world is witnessing due to the COVID-19 pandemic.

“This rating has proved beyond any doubt the solid foundations of the nation’s public finances,” said Sheikh Hamdan bin Rashid.

He stressed the success and effectiveness of proactive policies and measures taken by the federal government to deal with the effects of the pandemic, to continue achieving economic targets and pushing forward comprehensive and sustainable development, making the UAE a model to be followed globally.

Moody’s noted 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. That, in addition to its compliance to emergency commitments associated with government and geopolitical tensions.

Fitch has recently set the UAE sovereign rating at (AA-), with a stable outlook.

This rating is among 18 indicators that reflect the creditworthiness of federal government institutions and their ability to formulate necessary policies for sustained growth.

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