UAE govt’s high scores in Fitch Ratings appreciable; Sheikh Mohammed

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, appreciated the UAE federal government’s efforts after it earned a very high score in Fitch Ratings.

US-based Fitch Ratings Incorporation is a credit rating agency and is one of the “Big Three credit rating agencies” along with Moody’s and Standard & Poor’s.

The agency has credited the UAE federal government “–AA” rank with a stable outlook. The agency accredited the rating because of the moderate debt levels of the nation, strong assets and high economic output. The strong rating score of the UAE also underlines the great ability of the state to overcome the economic challenges especially due to COVID-19 and to develop creative economic, financial and monetary policies to stabilize the economy.

Fitch’s rating is based on 18 criteria that assess the economic, financial, banking and monetary sectors, in addition to the balance of payments and foreign trade.

HH Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of the Emirate of Dubai said that “Our good fiscal and monetary policies are the keys to the sovereign financial stability of the state”.

“Thank you to all the teams in the federal government for this achievement,” he added.

The credit rating agency said, “The high credit quality rating reflects the UAE’s moderate consolidated public debt level, strong net external asset position and high GDP per capita”.

Sheikh Hamdan bin Rashid, Deputy Ruler of Dubai and Minister of Finance said, “The government has consolidated the fundamentals of a sustainable economy, supported by its strong foreign relations and a wide network of partners around the world, which have made the UAE a global destination for finance and business, and an attractive haven for investors and major global institutions and companies.”

Recently, the UAE cabinet has approved the federal budget for next year with an estimated amount of $15 billion (Dh58 billion) for the development of the economy.

The expected budget next year for the second-largest economy in the Arab world is marginally lower than the $16.70 billion (Dh61.35 billion) budget this year, which is the largest in the history of the country.