UAE Maintains Strong Credit Rating, Stable Outlook Despite Regional Conflict, Says Ratings Agency

(MENAFN- Khaleej Times) The UAE has maintained its Aa2 sovereign credit rating with a stable outlook, underscoring the resilience of its economy despite ongoing regional geopolitical conflict, according to Moody’s Ratings.

The UAE Ministry of Finance said Moody’s completed a periodic review of the country’s ratings on March 30, 2026, reaffirming the current rating without changes. The agency clarified that the review does not constitute a rating action but reflects its ongoing assessment of the UAE’s credit profile.

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The reaffirmation highlights continued global confidence in the UAE’s economic strength and the sustainability of its fiscal policies. Moody’s cited high per capita income, strong institutional frameworks and effective policymaking as key pillars supporting the country’s creditworthiness.

** Stay u**

It also pointed to the federal government’s very low debt burden and strong financial position, backed by substantial fiscal reserves built over years of budget surpluses.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the unchanged rating reflects the UAE’s solid institutional framework and track record of sound governance.

“The UAE’s fiscal strength, anchored in low debt and balanced budgets, reinforces its resilience amid evolving regional and global challenges,” he said.

He added that the stable outlook signals a robust sovereign credit profile, supported by strong fiscal buffers and prudent financial management, enabling the country to navigate geopolitical developments effectively.

Al Hussaini said the review reinforces confidence in the UAE’s investment environment and highlights its ability to sustain economic and financial stability under varying conditions.

** Diversification supports outlook**

Moody’s noted continued progress in expanding non-oil revenues and advancing the UAE’s economic diversification strategy, supported by prudent policies and effective risk management.

The agency said the country’s credit profile remains resilient, underpinned by strong fiscal reserves and institutional strength despite regional uncertainties.

Separately, S&P Global Ratings affirmed the UAE’s sovereign rating at AA/A-1+ with a stable outlook on March 6, 2026. It cited strong fiscal and external buffers, as well as policy flexibility to manage geopolitical and economic risks.

The ratings reaffirmation further strengthens the UAE’s position as a stable and attractive destination for global investors.

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