The UAE Ministry of Finance announced that credit rating agency Moody’s Ratings has completed its periodic review of the United Arab Emirates’ (UAE) sovereign credit profile.
The review reaffirmed the UAE’s rating at Aa2 with a stable outlook, signaling continued global confidence in the country’s robust economic fundamentals, strong fiscal position, and resilience despite ongoing regional geopolitical tensions.
Moody’s clarified that the review does not constitute a credit rating action but represents a routine reassessment of the UAE’s credit profile in line with its methodologies and recent developments.
The review highlighted several factors underpinning the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, effective policymaking, and ongoing economic diversification.
Moody’s also cited the federal government’s very low debt burden and strong financial position, supported by substantial fiscal reserves accumulated from years of budget surpluses.
Mohamed bin Hadi Al Hussaini Minister of State for Financial Affairs
“The completion of Moody’s periodic review, with no change to the current rating and a stable outlook, reflects the UAE’s strong institutional framework and track record of effective governance. Our fiscal strength is anchored in low federal debt and consistent budgetary discipline, ensuring resilience amid evolving regional and global challenges. This review reinforces confidence in the UAE’s investment environment and confirms the country’s ability to maintain financial and economic stability under varied conditions.”
The minister highlighted the ongoing efforts by the Ministry of Finance to enhance public financial management, support growth in productive sectors, and develop the UAE dirham sovereign yield curve, promoting transparency and strengthening the country’s attractiveness to global investors.
Moody’s noted that the UAE’s credit profile remains resilient despite regional geopolitical tensions, supported by strong institutional backing and substantial fiscal reserves.
The review also acknowledged progress in expanding non-oil revenues, advancing economic diversification, and maintaining effective risk management and prudent fiscal policies.
S&P Global Ratings reaffirmed the UAE’s sovereign rating at AA/A-1+ for both local and foreign currencies, with a stable outlook.
